Property sale

Dear Sir,

Please share the following details for capital gain calculation:

1. Purchase year/date of allotment

2.Sales value

Hi

Considering the letter of allotment was received by you in 2011, it would be a long term capital gains.

For calculation of LTCG, cost of acquisition shall be indexed and them reduced from the sal consideration to arrive at the capital gain amount.

Costs shall be indexed according to the cost inflation index of respective years of payments.

We may help you with the calculation of capital gains and return filing.

Further, you may opt for reinvestment based exemption of capital gains by reinvesting the sales proceeds into another residential house property or eligible bonds.

Also, you may sell the flat before registration of the flat in your name.

Hi,

Hope you are doing well !!

As mentioned by you that the cost of property and sales value are equal.

Even after considering the indexation, your selling price will be less than indexed cost of acquisition. It will be a capital loss.

So, you will not be liable for any capital gain tax. 

To calculate the long-term capital gains tax payable, the following formula is to be used:

Long-term capital gain = full value of consideration received or accruing – (indexed cost of acquisition + indexed cost of improvement + cost of transfer), where:

Indexed cost of acquisition = cost of acquisition x cost inflation index of the year of transfer/cost inflation index of the year of acquisition.

Indexed cost of improvement = cost of improvement x cost inflation index of the year of transfer/cost inflation index of the year of improvement.

- If the property was registered in 2011 then holding period would be calculated from registry date otherwise possession.

- As there is no difference between sale value and cost price, question of capital gain does not arises.

The deed is registered in 2011?

Sale value is 1.06 crore then what's the purchase value?

What's the present circle rate when you will sell the property?

If you are saying that property was registered in your name in 2011 and its cost price as well as sale price is 1.06 crore then you will have a capital loss.

I doubt if the circle rate is still same as was in 2011 after 8 years.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Hi

Sale price minus indexed  cost of acquisition is Capital gain .Tax  thereon will be @ 20%

For saving capital gain tax,you can reinvest in another residential property or bonds .For property ,reinvestment to be done within 2 yrs from sale and for bonds,investment to be done within 6 months from sale .

Since  you booked under construction property,indexation for cost will be done as per the payment schedule.

Hope it helps.

Dear Sir,

There is no question of capital gain as the cost & sales value are equal.