I bought a flat in 2015 which I plan to sell now. Its been 2 years and 2 months till date. Since I would execute my sale in 2017 wanted to check if this would qualify for long term capital gain. There are some changes suggested in Budget 2017 around this but I was not sure if those amendments are already approved and would this apply to my case.
Dear Sir,
Yes, the Budget 2017 has lowered the holding period for gains to qualify as long-term in the case of immovable property to two years from three years currently.
This is approved and will apply in your case.
Please feel free to call/revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
Yes it would qualify for LTCG.
yes, it has been amended to 24 months
Thanks for the confirmation. Assume date of registration is considered as date for calculations. This is very comforting. I wanted to be 100% sure that this would qualify for LTCG hence posted here. Now that it has been confirmed that this is LTCG some follow up questions that comes to my mind. Let me share few important data points. Date of Registration of Flat - March 26th 2015, Hyderabad, Telangana. Total value of flat paid to builder - 53 lakhs Registration, VAR, Stamp Duty - 2.5 lakhs Advance maintenance, Gas pipeline, corpus etc. - 2.5 lakhs Interest paid to bank - 5 lakhs as pre EMI + 2 lakhs in EMI scope If I sell this flat for 70 lakhs, what all cost factors will be calculated. Do I need to create a capital gain account and put my money there to avoid tax, and reinvest in another property in 2 years. If I sell now will the 2 years be calculated as 24 months from date of sale or is it calculated as next 2 financial years. Please help.
You can consider Purchase price plus Registration charges i.e. builder + registration cost and stamp duty, interest paid on housing loan.
Only these can be considered.
2 years will be calculated from the date of sale. You can deposit the gain in Capital gain account scheme. In case of sale of residential property only gain amount need to be invested to arrive at the exemption
Hello,
The Total Amount which will be considered in your Cost of Acquisition is Amount paid to Builder, Registration Stamp Duty.
The time period of 24 months shall be from the date of your sale.
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
Hello,
Yes, the clause has been ammended and now the holding period is reduced to 24 months.
The Cost of Acquisition will be Cost of Purchase plus Government duties and taxes.
Regards
Keerthiga Padmanabhan
M.Com., CA, LLB
