We (me and my wife) booked a 3 bhk Flat in 3C Lotus Boulevard, NOIDA in 2009 under construction linked plan for Rs. 52 lakhs. We were issued the Letter for Offer of possesion & execution of Sub Lease deed registration on 18 Mar 2016 by the builder. Till date we have not taken the possesion as the registry was closed by NGT due to some reason, neither the registry is done. Now if want to sell the property, what are the tax implications. Please advice.
Hi
When did you receive the letter of allotment?
You will have to pay long term capital gain or short term capital gain depending upon the date of allotment letter.
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
Hi
Please share the date of allotment of the flat to decide the nature of capital gains involved.
Booking Date - 10 Aug 2009 Allotment Letter - 7 Oct 2009 Flat Buyer Agreement - 5 Dec 2009 Offer of possession - 18 Mar 2016 Till Date possession not taken and Registry not Done. Payment of around 8L pending.
This would be a Long Term Capital gain. Capital Gains would be calculated by reducing indexed cost of acquisition from the same proceeds.
You can invest the capital gain amount in another house property or invest in 54EC notified bonds in order to claim exemptions from such capital gains.
Hi,
It will be long term capital gain. Capital Gains would be calculated by reducing indexed cost of acquisition (I.e. 52 lacs *1.48) from the sales consideration.
You can invest the capital gain amount in buying another house property or invest in notified bonds to claim exemptions from such capital gains.
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
Hello,
It will be considered as a LTCG since the date of allotment is 07th October 2009.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, FCA, LLB, CERT. FAFP
