I booked a flat at total cost of Rs. 30.5 Lacs in year 2009 with a builder at Ghaziabad. BBA was signed in July'2009 & got possession of the said flat in December'2011 & also got the registry done in Dec'2011. I had made almost 70% of the total cost of the flat in the year 2009 itself. I paid stamp duty of Rs. 2.5 Lacs i.e. total end cost to me is Rs. 33 Lacs (approx.). I also taken loan of Rs. 10 Lacs on this property from the bank (interest paid to the bank till the time of sell of the flat is Rs. 3.5 Lacs).
I have sold this flat in August'2013 at a cost of Rs. 40 Lacs. I made sell agreement with the buyer on 4th August’13, however I got an advance of Rs. 10 Lacs from the buyer on 20th July’13 itself. The sale deed was registered i.e. registry was done at Ghaziabad on 30.8.2013, but at time of sale deed, I came to know that the circle rates got revised w.e.f 1.8.2013 & as per the new circle rate, the cost of the property was Rs. 50.52 Lacs, so stamp duty was paid on the revised circle rate. Sir, I have 2 queries on this:
1.Whether I will be entitled for long-term capital gain or short term capital gain tax? If we consider 3 years time frame from BBA, I am entitled for long-term capital gain tax, but if we consider 3 years time frame from possession date/registry date, it shall be short-time gain tax. Which is correct..
2. Since I got advance money (on 22.7.13) from the buyer of Rs. 10 Lacs before revision of the circle rate (w.e.f 1.8.13), but the sell agreement was signed on 4.8.13, so for the purpose of tax calculation, whether I will consider the actual sale value of Rs. 40 Lacs (which is as per the old circle rate) or the cost as per the new circle rates (stamp duty value- Rs. 50.5 Lacs) is to be considered.
3. Whether buyer is also need to be taxed in the above case, where the transaction of money actually happened before revision of circle rate, but the consideration sale value (Rs. 40 Lacs) is less than the revised circle rate of the property (50.52 Lacs) by Rs. 10.52 Lacs. Transaction of part- money done on 22.7.13, agreement to sale was done on 4.8.13, revision of circle rates w.e.f 1.8.13, registry done on 30.8.13.
4. Pls tell us the income tax amount to be paid in the above transaction also as per the case- whether long term or short term..
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