Assessment of capital gain tax as LTCG or STCG and calculation of Income Tax

Assessment of capital gain tax as LTCG or STCG and calculation of Income Tax

I and my wife jointly booked a construction linked flat on 09/12/2012 by paying
Rs 373692/-for Flat no C-204 , Tower -C in project Aims Green Avenue plot no 4 , sector -4 Greater Noida. The Builder Buyer Agreement was signed on 13/04/2013 for the basic price of flat for
Rs3736925/- + PLC Rs 155000/-
Total Rs 3892175/-
We have paid 95% of flat Rs 3669753/- as per demand of builder on various stages upto 21/04/2016.
The builder was to give possession upto 31/12/2016 of flat.
But OC /CC was obtained by builder in October 2021. But the flats were not even completed upto April 2024 from inside.
We lodged a complaint in UP Rera for possession of flat. The court passed the order on 15/06/2020 to complete the flat and provide possession .
Then we again lodged case in UP Rera under section 24 in August 2023 to provide us possession of flat and registration of flat. We have deposited Rs 500000/- on 07/04/2024 being the 5% balance of basic price + PLC and other charges. The court on non compliance of order Of court by the builder attached our flat and provided us the possession on 23/06/2025 and also pressurised the builder for registration of flat. The flat was got registered on 19/05/2026 as follows-
Basic price. Rs 3736925/-
E-Stamp. Rs. 186900/-
1%Tehsil feeRs. 37370/-
Total. Rs 3961195/-
Rs 500000/- was also paid on 07/04/2024

Now I want to sell it in July 2026 for Rs 56lakh
We both are Indian residents and retired employees.
Please advise
1. If it is LTCG as per Allotment letter
Dt 27/04/2013 or Builder Buyer agreement Dt 13/04/2013 and booking date 09/12/2012
2. How much TDS is to be deducted.
3. How much indexed cost of flat will come out in July 2026
4. If any tax will have to be paid by us.
Please reply my answers I will be thankful to you sir.

Asked 1 day ago in Capital Gains Tax

Dear Querist,

On the facts given, this should be treated as LTCG, as your rights in the flat arose from booking/allotment/Builder Buyer Agreement in 2012-13/2013, not from registration in 2026.

Since sale value is ₹56 lakh, buyer has to deduct TDS @ 1%, i.e. ₹56,000.

Exact indexed cost cannot be finalised without date-wise payment details , but stamp duty/registration charges can be added to cost. Based on your facts, tax may be nil or very low under indexed LTCG calculation.

Keep allotment letter, BBA, payment receipts, RERA orders and registry papers ready for final computation before sale/ITR filing.

For a more detailed review of your case, you may book a phone consultation.

CA Shubham Goyal

Shubham Goyal

CA, Delhi

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Dear Sir,

Hope you are doing well.

1. It is Long-Term Capital Gain (LTCG).

2. Buyer will deduct TDS under Section 194-IA at 1%.

TDS = Rs. 56,00,000 × 1% = Rs.56,000/-

If ownership is 50:50, TDS should normally be deducted ₹28,000 each against your and your wife's PAN.

3. Please share the payment dates for calculation of Indexation.

4. Please share the payment dates for calculation of Indexation and exact tax liability.

You can Claim exemption under Section 54 by purchasing another residential house or invest the capital gain in 54EC bonds within 6 months of sale.

If you require any further detailed clarification or assistance, you may schedule a telephonic consultation at your convenience.

Thanks & Regards,

Payal Chhajed

CA, Mumbai

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