• Tax on long term capital gain for commercial plot

We have purchase a commercial plot from HUDA ,Gurgaon in open auction with allotment letter dated 12-03-1990 in Rs. 2236000/-out of which 25% (559000/-) was paid in march 1990 and balance 75% (Rs. 1677000/-) was paid on 24-12-2004.
We got offer of possession on 17-01-2008 and actual possession on 08-09-2009 from HUDA.conveyance deed was registered on 09-02-2010.
We also received Rs. 15 Lac from HUDA in 2014 by order of Punjab & haryana high court as interest for delay in offer of possession.
Now we have sold the plot in September. 2015 in Rs. 3 crores .plot is in the name of our registered partnership firm having six partners.now our questions are:---
1. Which date will be considered for CII for long term capital gain as purchase date ?
2. How the long term capital gain will be calculated?
3.How much LTCG tax will have to be considered ,which we have to pay?
4.How can be save tax on this long term capital gain and to which extent?
Asked 3 years ago in Capital Gains Tax from Bathinda, Punjab

1. purchase date will be 08-09-2009 based on possession.

2. In our opinion 24-12-2004 shall be relevant for capital gains.

3. LTCG tax will be @ 20.6%

4. You can invest in bonds issued u/s 54EC and save capital gains tax upto Rs 50 lakhs.

Vijay N. Kale
CA, Hyderabad
248 Answers
13 Consultations

4.9 on 5.0

Please clarify whether you had completed all the terms of auction on 24th December 2004? What was the reason for receiving the offer of possession on 17th January 2008? Subsequent compensation received by you shows that there was nothing pending from your side. However, please confirm this so that proper proper opinion can be given.

Sagar Jayawant
CA, Thane
27 Answers
7 Consultations

5.0 on 5.0

As per our view the date of allotment letter should be considered.

the interest shall be taken under income from other sources or shall be reduced from the cost.

You need to take sale proceeds minus the indexed cost of acquisition for calculation.

As per our view you need to pay tax on the gain.

Sir we need to check the allotment letter for exact answer. We have given the above answer based on assumption. If you can give us more details then we can provide you with correct answer

Shyam Sunder Modani
CA, Hyderabad
1408 Answers
107 Consultations

5.0 on 5.0

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