Transfer of booked flat
This query is : Resolved
01 September 2024
Respected Sir,
My son, NRI has booked a flat in Hyderabad with a reputed builder. In the next 3 months, builder may offer possession. However, there is a provision in the agreement that if any one who booked flat wishes to re-assign, transfer his booking to other person before registration, he can do so by paying certain fee.
Point is that: while booking, more equity is invested apart from a portion of loan from a Public Sector Bank. For example-50 lakhs is equity, 40 lakhs is loan. Now, the offer from a prospective buyer is for 180 lakhs. Out of which 40 lakhs will go towards bank loan. Balance will be paid the existing flat holder either thru cheque or RTGS or so.. I would like to know, how the difference amount of 90 lakhs will be treated as per the ITax and Capital gains tax guidelines. Please guide. In this case, it is transferring the booked flat in the books of the builder prior to registration and hence, no transfer of capital asset.
My son, NRI has booked a flat in Hyderabad with a reputed builder. In the next 3 months, builder may offer possession. However, there is a provision in the agreement that if any one who booked flat wishes to re-assign, transfer his booking to other person before registration, he can do so by paying certain fee.
Point is that: while booking, more equity is invested apart from a portion of loan from a Public Sector Bank. For example-50 lakhs is equity, 40 lakhs is loan. Now, the offer from a prospective buyer is for 180 lakhs. Out of which 40 lakhs will go towards bank loan. Balance will be paid the existing flat holder either thru cheque or RTGS or so.. I would like to know, how the difference amount of 90 lakhs will be treated as per the ITax and Capital gains tax guidelines. Please guide. In this case, it is transferring the booked flat in the books of the builder prior to registration and hence, no transfer of capital asset.
01 September 2024
When was the allotment letter received or purchase agreement registered by your son?
03 September 2024
Sir,
My son has booked the flat on 02-09-2021 and on payment of specified amount after booking an agreement to sale is signed on 05-10-2021. Regards
My son has booked the flat on 02-09-2021 and on payment of specified amount after booking an agreement to sale is signed on 05-10-2021. Regards
03 September 2024
Based on agreement with the builder, the excess amount can be treated as long term capital gain over a capital asset.
05 September 2024
Sir,
My confusion is that: when there is no capital asset registered in my son's name and he is not registering any flat in the prospective buyer's name, still will it be classified under Long Term Capital Gains tax??
My confusion is that: when there is no capital asset registered in my son's name and he is not registering any flat in the prospective buyer's name, still will it be classified under Long Term Capital Gains tax??
05 September 2024
Yes, it is called transfer of 'right in an asset', not flat.
05 September 2024
Thank you sir. Now, I am clear. Regards
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05 September 2024
My Pleasure.
05 September 2024
Respected Sir,
After crediting the loan component directly to the bank loan account, balance amount can we get it credited to his NRO a/c?. What is the tax liability and will we be able to transfer the amount to his account abroad (US) through the Banking channel after complying with the tax liability in India? Will there be any additional tax liability abroad?
Please guide. Regards
After crediting the loan component directly to the bank loan account, balance amount can we get it credited to his NRO a/c?. What is the tax liability and will we be able to transfer the amount to his account abroad (US) through the Banking channel after complying with the tax liability in India? Will there be any additional tax liability abroad?
Please guide. Regards
05 September 2024
1 Yes,
2. Yes after getting CA certificate.
3. Depends upon the tax laws of the resident country.
2. Yes after getting CA certificate.
3. Depends upon the tax laws of the resident country.
05 September 2024
Sir,
You are so fast and clear. I salute you. Regards
You are so fast and clear. I salute you. Regards
05 September 2024
Good Luck.
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