Calculation regarding Long Term Capital gain including Indexed gain

POSTED BY ehsnish ON September 24, 2013 12:59 pm COMMENTS (5)

Hi Manish,

Thanks for providing very fruitful and handy information on capital tax gain and respective calculator.

Need your advise….

I bought a house in under construction society in Apr 2005 and upfront paid the builder approx 29 lacs (Downpayment sceheme).  In 2007 (Aug), before getting the possession, I paid  approx 1 lac for parking, maintenance and other stuff.  Also, I spent 2.5 lacs for registry (10% stamp duty).  Please note that the total cost of property is 29 lacs out of which 25 lacs was for property cost and 4 lacs was provided to builder (as separate agreement) for internal furnishing, white washing, etc.. Registry was done on the 25 lacs and not 29 lacs.

Query

a) What should be the purchase year since i paid the full amount in CY2005 and posession was in 2007?
b) Also, i spent 29 lascs in CY2005 and approx 2.5 lacs including stamp duty, parking etc. Therefore, how should I do the indexing.
c) It would be good if you can provide me how to calculate and what will be the final capital gain in this case.

5 replies on this article “Calculation regarding Long Term Capital gain including Indexed gain”

  1. ashalanshu says:

    Dear Ehsnish, you got it wrong. Date of possession is important. In your case, the rights on your property for you were created in 2007 itself. So 25L Rs. paid at that time ‘ll be calculated for LTCG calculation from that date. Remaining amount was paid in 2009 anf hence for this amount LTCG calculation ‘ll be from that date.

    thanks

    Ashal

  2. ashalanshu says:

    Dear Ehsnish, the amount paid by you on both dates is eligible for LTCG calcalation. The individual dates in the respective FY should be counted with that FY’s CII number.

    Thanks

    Ashal

    1. ehsnish says:

      Thanks for the quick reply..

      I assume there is no linkage of LTCG calculation with property possession date……. right?

  3. ashalanshu says:

    Dear Ahsnish, do you have proofs for all the payments made by you?

    Thanks

    Ashal

    1. ehsnish says:

      Yes. I have all the legal paper for the same..

      Therefore, please let me know the answers to my query primarily covering the calculation and the details…

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