Short term capital gain on property under construction

Sir,

Can you please help me understand what will be the tax on selling a property which is under construction (not under my possession) and it sold before completion on 3 years?

Since the property is owned by me, CA says that tax will be computed on whole capital gain and not even indexation will be considered. Is that true?

Is there any way to save tax in this capital gain?
Asked 1 year ago in Capital Gains Tax from Noida, Uttar Pradesh
Since the right in the property is sold with less than three years of holding, it will be considered as short term capital gain with no indexation benefit. If you have any other short term capital loss during the same financial year (such as on sale of shares etc.), then the same can be set off against this short term capital gain. I do not think there is any other way you can save this tax.   
Sagar Jayawant
CA, Thane
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What is said by the chartered accountant is true. You will have to offer short term capital gains to tax with other income . secondly there is no indexation benefit for short term capital gains. 
Vijay N. Kale
CA, Hyderabad
248 Answers
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In case of short term capital gain indexation will not be available. In the present case since you have not received the possession of the property then it be be taxed under income from business or income from other sources, depends on your nature of business.

You can deduct from the sale proceeds any cost incurred for purchase, construction and commission paid on sale and purchase of the property. 
Shyam Sunder Modani
CA, Hyderabad
955 Answers
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