How to calculate Capital Gain on apartment sold after 3 yrs ?

POSTED BY Pankaja V.L. ON February 10, 2014 3:56 pm COMMENTS (4)

I bought an apartment which was registered in Feb 2008. The construction was completed in Jun 2010 and apartment was handed over. I paid 25%, 35%, 20% and 20% in FY 2008, 2009, 2010, 2011. I plan to sell the apartment now. How do I calculate the indexed cost of apartment? Is it

a) 100% amount (say 20L) paid as on Feb 2008 (which seems incorrect as amount was paid over a period of time)

b) 100% amount (say 20L) paid as on Jun 2010 – the day the apartment was handed over.

c) indexed cost based on the amount paid over 4 financial year. (i.e. used the indexed cost for each financial year when the amount was spent).

4 replies on this article “How to calculate Capital Gain on apartment sold after 3 yrs ?”

  1. ashalanshu says:

    Dear Akgc2, the last payment date should be counted for 3Y period to be eligible for all transactions to fall into LTCG zone. So if the last transaction and registry happens say in Jan 2014, you need to hold your property till Jan 2017 at least.

    thanks

    Ashal

  2. akgc2 says:

    Hi Ashal
    Can you please clarify the indexation and Capital Gain calculation for an Under construction flat where payment is made during construction in multiple FYs but the registry and hand over happens only at the end?

    Lets Say if I book a flat in FY 2011-12 and starts making payments as per builder demand till 2013 and then Registry and Handover happens in FY 2013-14 then how long I need to hold that flat so that there is no STCG and its only LTCG.

  3. Pankaja V.L. says:

    Thanks Ashal for the response.

  4. ashalanshu says:

    Dear Pankaja, the correct option is C. indexed cost for each installments.

    Thanks

    Ashal

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