Is it long term gain or not

Is it long term gain or not

Sir, I booked a flat in Feb 2006 for 54lakhs including deposits .in Feb 2016 I paid 7.07lakhs as advance.in July 2008 I paid 4.71 lakhs and builder and me entered into agreement to sell in aug 2008,i paid 3.77 lakhs on July 2010,rs 4.7lakhs in feb 2011,rs 21.23lakhs from April2011 to March 2012,,and rs 4.24 lakhs in may 2012, rs 1.5 lakhs in January 2015
And balance of rs 6.74 lakhs paid in January 2019.The project completed 3years back. In january 2019 i cleared all dues after that they give possession certificate in January 2019 ,but I am not take physical possession. Property is not registered yet in my name.
Now I want to sell the property for rs 1,3crore,Now I want to know the Gain i getting will be short term or long term gain. What will be Tax amount I have to pay,Please Advise.
Thanking you

Asked 6 years ago in Capital Gains Tax

It will be a long term capital gain. For every payment you need to calculate the indexed cost in the year of sale and deduct them from sale consideration of Rs.1.30 cr.

Vivek Kumar Arora

CA, Delhi

5015 Answers

1136 Consultations

Talk to Vivek Kumar Arora

Since you haven't entered into sale deed and only entered into agreement which means you are selling your right in the property and it will be a long term capital gain and you need to index each and every payment.

If you need any help or assistance in filing return or any income tax matters you can mail or call me.

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

Thank you

Naman Maloo

CA, Jaipur

4303 Answers

101 Consultations

Talk to Naman Maloo

It will be long term capital gain. The date of allotment shall be considered as the date of acquisition. The payments shall be indexed according to the year of payments. All payments made before date of allotment shall be indexed according to the index of year of allotment.

Lakshita Bhandari

CA, Mumbai

5687 Answers

942 Consultations

Talk to Lakshita Bhandari

Dear Sir,

Hope you are doing well !!

It will be long term capital gain.

The holding period should be computed from the date of issue of allotment letter by the developer

Any payments made before allotment is to be provided indexation from the date of allotment and any payment made after is to be provided benefit of indexation from the date the payment is made.

We may help you in LTCG calculation.