11 replies on this article “Profit calculation from Sale of Flat of three storeyed building under construction.”

1. Ashal Jauhari says:

   February 15, 2013 at 2:32 pm

   Dear Rajesh, yes is the answer. As it’s your money from day one, all the income ‘ll be under your name.

   Thanks

   Ashal

   Reply
2. Rajesh Chanana says:

   February 15, 2013 at 11:11 am

   Sir,I will sell the further floors in near future,then again payment will be received by both of us equally.Then again I will be liable or both of us.Thanks.

   Reply
3. Ashal Jauhari says:

   February 14, 2013 at 10:10 pm

   Dear Rajesh, as your wife was merely a co-owner on paper & not actual owner in terms of money spend for her share in the property, you can not save tax the way you are thinking. All the LTCGs & STCGs ‘ll be taxable in your name only.

   We do not promote tax evasion or unhealthy practices. Still if you want to move ahead the way you are thinking, please contact any local tax professional or CA who may do the job for you but be ready to fight it out if your case comes under scruitiny.

   Thanks

   Ashal

   Reply
4. Rajesh Chanana says:

   February 14, 2013 at 7:41 pm

   Sir,I am sorry I have to disclose one more thing,plot was purchased by me and construction was also done by me,but I got my wifes name added in 2008 as a co owner of the plot.Now when we sold one floor both of us got separate payments of Rs 12 lacs each.My wife did not invest anything in plot purchase/in construction.
   If my wife shows capital gain of 12 lacs can she invest the same in further construction of the same building in next one or two years to save LTCG.
   I show payment received 12 lacs and pay LTCG/tax on your calculation divided by two.This will help me to save capital gains tax and Income tax as well.
   Please guide.Thanks.

   Reply
5. Ashal Jauhari says:

   February 13, 2013 at 10:35 pm

   Dear Rajesh, only Land prices ‘ll qualify for LTCG, the floor consturction is not completed yet, hence the gains on it ‘ll be STCG.

   So for land purchase price of 3L Rs., the indexed price of purchase = 492500

   Hence indexed LTCG = 533000 – 492500 = 40500 Rs.

   the STCG on construction = sell price – construction price = (2400000 – 533000) – (1150000/3) = 1483667

   So Tax on LTCG ‘ll be @ 20.6% & Tax on STCG ‘ll be at your slab rate.

   I do not know your slab rate, so can not comment.

   thanks

   Ashal

   Reply
6. Rajesh Chanana says:

   February 13, 2013 at 5:00 pm

   Sir,24 lacs is the sale price of one floor,and now the cost of plot is 16 lacs/3=5.33 lacs and cost on construction is 24 lacs/3=8 lacs.I want the profit calculation after indexed pricing and further evaluations.Thanks.Dr.Chanana.

   Reply
7. Ashal Jauhari says:

   February 13, 2013 at 2:34 pm

   Dear Rajesh, you mean to say out os sell consideration of 24L Rs. against a floor sold by you, 16L Rs. is meant for land & 8L Rs. meant for construction?

   Please confirm.

   Thanks

   Ashal

   Reply
8. Rajesh Chanana says:

   February 13, 2013 at 11:34 am

   Sir,As on date the land value is around 16 lacs and total construction cost of construction will be apprx. 8 lacs into three floors ie 24 lacs.Thanks.

   Reply
9. Ashal Jauhari says:

   February 12, 2013 at 9:31 pm

   Dear Rajesh, so effectively you have sold 1/3 part of your land also. The part of land ‘ll become LTCGs based upon the break up of land & floor construction price provided by you.

   Now do tell me, what’s the price of land & what’s the price of construction?

   Thanks

   Ashal

   Reply
10. Rajesh Chanana says:

    February 12, 2013 at 7:11 pm

    Hello
    This is three storeyed building,land rights will be equally distributed among three owners.Thanks.

    Reply
11. Ashal Jauhari says:

    February 12, 2013 at 6:56 pm

    Dear Rajesh, what about the land rights against this floor sell?

    Thanks

    Ashal

    Reply

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