Tax implications with respect to property sale
Hi,
We bought an Apartment in 2009 in Bangalore & Got a provisional Allotment letter around that time.
We got possession of the property in 2016 and we are yet to Register the Flat.
Builder has asked us to first Register the flat in our name and only then we can sell it.
If we register in Apr 2017, and then sell it, will we qualify for Long term or Short term Capital gain and hence the tax liabilities arising out of it? Will our Date of Allotment (in 2009) or date of Registration (in 2017) be considered while ascertaining whether we qualify for Short term or long term Capital gain.
Also - if we qualify for Long term Capital gain, where our Purchase Price would be around 50 L and Sale price is 80 L, what will be the Tax liability ? When will we have to pay this tax and how can we save tax ?
Regards
Meetu
Asked 7 years ago in Income Tax
Thank you. Yes we paid booking amount at the time of Allotment of the Flat.
(1) So could we be rest assured that even if the Flat Registration is happening now in 2017, we will come under Long term capital gain and the tax implications thereafter ?
(2) We purchased our Apartment for a total of 45 Lakhs + 5 Lakhs we spent on interiors , so the total value would be 50 Lakhs. We are selling the flat now at 80 Lakhs. However if we take the index of 2009 and 2016 (which is available currently), we are not making a profit as per that with the calculation ie 50 L * (1125/632) = 89 Lakhs. Since we are making a loss of 9 L (89 L minus 80 L) , hope we are not liable to pay any Capital Gain tax in that case ?
Asked 7 years ago