Hi, I am Vivek from Mumbai, I had purchased one room at Byculla(w) in pagadi system for RS 17,00,000/ in 2008. Apparently, that building got redeveloped and we got possession on June, 2016. As per the sale deed between tenant and developer, the flats have been sold to tenant at zero value. as the we are the original tenant and he has build separate building for sale. Now, I would like to sale my 1BHK to third party, (the rate of property is around 80Lacs). My Questions are.. Am I allowed to sale the property which is recently being allotted to me? Will there be any capital gain tax liability? short term or long term I appreciate your reply. thanks!
Hello Vivek,
It appears that you are planning to sell your property.
The answer to your question are:
1. Yes, you can very well sell the property, unless there is a Lock in period or Exit Clause mentioned in your agreement.
2. Long Term Capital gain shall be applicable in your case.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
Thanks Rohit for your prompt reply! Are you sure long term Capital gain would be applicable? Asking since I recently got the possession and new agreement is registered between me and promoter and purchase price is zero as per agreement. I am selling this property within one year. Second question is how would be the tax liability? if I sell my flat for 80 lac. The original purchase of 1RK was Pagadi system and not ownership basis. Let me know if you need any further details to answer my question. Thanks!
Hello Vivek,
To give you a concrete reply I will have to go through your Paghdi agreement. If the agreement says that you were a tenant and will always remain so, then technically you were not an owner then and become one when the flat was built. Which brings us down to Short Term capital Gain.
So it totally depends on the agreement. You may also go through the same and get back with the wordings.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
Thanks Rohit! Can you please share your contact detail or email ID where I can send the agreement copy... Please. Best regards,
hope your query is answered
