masum gupta (accounts manager) (33 Points)
31 August 2012i want to sale a property which is under construction.hav invested in it last year....anyone please tell me the tax implication.....how much tax will be charged and is there any way of taking exemption???
CA Saiyum khan
(Practicing CA)
(685 Points)
Replied 31 August 2012
If this property was held as investment then short term capital gain would be attracfted and hence you need to pay 15% STCG. If it is held as stock in trade then profit will be taxable as per applicable slab.
AmitS
(Manager)
(31 Points)
Replied 12 September 2012
I have a follow up question on this:
1. Few other experts are suggesting that 15% is only for shares but not for "rights of property" as it is under construction. In this case, a right to property is termed as capital asset & hence normal tax slab will apply for STCG.
1. How to arrive the cost of acquisition? Can I include interest paid on borrowed capital for purchase of under construction property?
2. How to arrive fair market value? It is in new gurgaon sector86 for which circle rate is not available.
Please clarify!
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