Sale of ready to occupy builder flat before taking possession

My husband and I had registered jointly  for a flat in NOIDA in  2010 and the flat is now ready in 2016  to move in . we have not yer taken possession , we plan to sell the flat through the builder. Can you please clarify the following
1. Since possession has not been taken what will be the tax structure for the sale
2. the guideline value set by NOIDA Authority is much higher than the prevailing market rate, what amount of money would be considered as a profit on which we would be taxed ? 
3. my husband does not have any income at the moment, what would be his tax liability?
Asked 1 year ago in Capital Gains Tax from Chennai, Tamil Nadu
Dear Madam,

1. You will be liable to pay capital gain tax on the difference of sale value and indexed cost of acquisition. It will be a long term capital gain.

2.If the sale consideration is less than the stamp duty value. stamp duty value will be deemed to be sale consideration.

3. Refer point 1.


Please feel free to call/revert in case of any doubts

Thanks and Regards
Abhishek Dugar
CA CS B.Com
caabhishekdugar@gmail.com
Abhishek Dugar
CA, Mumbai
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It will be treated as income from other sources and taxed.

In your case take from the purchaser what you have invested and some portion of profit. Then the sale deed will be made between the Builder and the new purchaser. They will take care of the valuation.
Shyam Sunder Modani
CA, Hyderabad
1390 Answers
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