Hi,

Please find overall details and few queries:

1). I bought a flat in Nov 2005 for Rs 35L
2). I sold the same flat in Aug 2010 for Rs 125L
3). Same year, in Oct’2010, I booked another flat for Rs 12L, received Allotment Letter in dec 2010. Paid another payment of Rs 125L as down-payment (95%) for the given flat in Dec 2010. pending 5% payment is left to pay at the time of possession.

Long Term Capital Gain calculations:

1. purchase (11.2005) 35L
2. index price (08.2010) 50L
3. sale price 125L
4. long term capital gain 75L
5. long term capital gain tax arise @20% on 75L = 15L

to save the LTCG tax there are 2 ways:

1). Person has to buy ready-possession property within 2 years
2). Person has to buy under construction property and get possession within 3 years.

I’m falling under point-2 as
I paid full amount straightaway in the same financial year (more then requirement for LTCG)
I also declared my under-construction property in my ITR hence covered for paying LTCG tax.

Now, there are few queries:

1). For under-construction property, which date (Allotment-date (Dec’2010) / Posession-date (Dec’2013)) will count for short-term/long-term capital gain calculations ?
2). want to sell the under-cons property in april 2014, please share the tax implications.

Request you to please confirm as I followed up with 3-4 CAs but they don’t have clarity on this.