• LTCG on apartment property

I have purchase property in Pune:
1. Allotment 1ith 10% of Flat Base price in Jan 2015.
2. Regular paid Installment till 2019 ( 90% Paid till Nov. 2019).
3. Registration Done in April 2017.
4. Balance 10% Paid in June 2022 and receive the Possession.
5. Now want to sell the Property in April 2024.
Please let me know if I get the benefit of LTCG and Price Indexing.
Asked 1 month ago in Capital Gains Tax

It would be classified as LTCG and you can avail benefit of indexation. It may be subject to litigation

 

For detailed discussion you may opt for phone consultation

Vivek Kumar Arora
CA, Delhi
4840 Answers
1037 Consultations

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Yes it may be

Vivek Kumar Arora
CA, Delhi
4840 Answers
1037 Consultations

5.0 on 5.0

When you sell a property that you've held for more than two years, any gain you realize is considered a Long-Term Capital Gain (LTCG). You are allowed to benefit from indexation, which adjusts the purchase price of your asset based on the Cost Inflation Index (CII) provided by the Income Tax Department. This adjustment accounts for inflation and typically results in a lower taxable gain.

  1. LTCG Eligibility: Since you've held the property for more than two years, you're eligible for LTCG.

  2. Indexation Benefit: Utilize the Cost Inflation Index (CII) to adjust the purchase cost of your property, reducing the taxable gain.

  3. Documentation: Keep detailed records of all transactions, including purchase payments and property sale.

  4. Potential IT Scrutiny: The term "litigation" here refers to the possible review or questions from the Income Tax department, not actual legal disputes.

For detailed, personalized advice, consider a phone consultancy.

Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.

 

Thank you.

Shubham Goyal

Shubham Goyal
CA, Delhi
212 Answers
4 Consultations

5.0 on 5.0

Since you have received possession in 2022, legally your 2 years should complete in June 2024. However, if you have registered property in 2017 you can claim benefit that registration was done in 2017 and hence you were an owner of that property from 2017. Please check if in the deed you were mentioned as whole and sole owner.

 

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Thank you.

Naman Maloo
CA, Jaipur
4272 Answers
97 Consultations

5.0 on 5.0

The transfer of property took place in April 2017, when it was registed in your name. Hence, your capital gains will be in the nature of Long Term only. 

Though you took possession of the property in June 2022, the beneficial ownership of the property passed on to you in Apirl 2017 itself. 

You need to check your Annual Information Statement after logging in to the Incometax.gov.in and ensure that there is no mismatch betwen AIS and your IT Return.

B Vijaya Kumar
CA, Hyderabad
1001 Answers
124 Consultations

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