Capital gain/investment income query

Dear Sir,

1) Transaction is liable to capital gain tax and payment of GST is builder liability.

2) Yes you can reinvest in REC bonds upto Rs. 50 lacs.

Thanks

Hi,

This will be treated as capital gains and you will be liable to pay taxes on the same.

Yes, you can invest the gains in REC bonds to be eligible for tax exemptions.

Regards,

Nikhil

Hi,

It will be a capital gain and yes you can invest in REC/ NHAI bonds to claim exemption from capital gain tax. However, you cannot​ invest more than 50 lacs in bonds in a single financial year.

There is no GST impact. You don't need to charge GST on sale of flat.

It will be an investment income under the head Other Sources as you dont call it a house property unless registered in your name. If registered a capital gain from the date of the registeration whether short or long term. Is it registered in your name as a fully completed unit or only land is registered? Depends on a lot of things. If at all a short term gain, no tax benefits available in REC bonds. Occupancy certificate has nothing to do with income tax but your possession certificate and the fact the property is in your name as a fully completed unit. Find me in linkedun amitnarula.

Hi

Such transaction shall be liable to capital gains tax. The gains shall not be Rs. 1 crore; proportionate costs shall be considered for 2 units and such proportionate costs shall be indexed.

Investment in REC bonds can be done for claiming capital gain exemption. However, investment in bonds can be done upto Rs. 50 lacs only and the bonds shall be redeemable after 5 years.

Hii,

Hope you are doing well !

Please find below the replies:

1. It is a capital gain.

2. Yes, you can invest up to Rs 50 lakh in REC bond for claiming the exemption. There is no GST impact on this transaction.

Thanks & Regards,

Payal Chhajed

Hi,

Unless the property is constructed and handed over to you, it is not a residential property in your hands, rather a right to buy the property. If you sell this right to buy, then also capital gains arise, however you may not be able to take any exemption of REC bonds on this as the sale if not of residential property. Once it is handed over to you with completion certificate, then it is a residential property in your hand.

Thanks

Damini

Yes capital gain will attract here,it should be computed ,as cost is for 4 units,it should be prop to 2 units . Indexation benefit can also be taken here.

Investment in Bonds can be done subject to max amount of 50 lacs with locking period of 5 yrs.

GST is builder's liability in these case.

Dear Sir,

1) Capital asset is right to an asset.

2) Yes it is an extinguishment of right.

3) If section 54EC is not applicable, take the benefit of section 54EE.

Thanks

This would mean a relinquishment/ astonish of right in the property which is covered in the definition of Transfer under the Income tax act.

Refer https://www.google.co.in/amp/s/taxguru.in/income-tax/taxability-capital-gain-sale-construction-property-nature-gain-date-indexation-availability-benefit-section-54-54ec.html/%3famp for a detailed discussion about classification of such transfer aa transfer of capital asset.

Post amendment by Finance Act 2018, 54EC still remains same for you. The exemption can be claimed. However the period of holding now has to be 5 years instead of 3 years as earlier.

Yes the asset is the right to an asset which you are now relinquishing..

It will be treated as capital gains and the same is liable for tax

However, you can invest the gains in REC bonds to be eligible for tax exemption

Yes,its extinguishment of right which attract capital gain.

You can invest in bonds under 54EC and exemption can be claimed under sec 54 also.

Hii,

Yes, it is a extinguishment of right to an asset as a result of which capital gain would arise.

You can invest your long-term capital gains in certain bonds specified u/s 54EC You can invest a maximum of Rs 50 lakh in these bonds and investment should be made within six months from the date of sale. These bonds have a lock-in period of five years.

Thanks & Regards,

Payal Chhajed