Guys, I am not that gr8 in taxation mathematics & need your advice for my case given below



    Alloted under construction property in Dec 2010 in CLP plan in 40L
    Sold property in 56L in (all white) in May 2014
    2014-15 CII = 1024, 2010-11 index = 711
    CII Adjused cost : 40,00,000 * 1024/711 = approx 57L
    Long Term capital gains = 56L-57L=-1L (1 LAC loss)

    Q1. Is this calculation correct?
    Q2. If yes, do I need to show it my ITR (I am salaried person)

    Thanking you in advance for your help
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  • Did you sell an u/c property or after taking possession?
    This question is important.
    Treatment of loss:Capital Loss: Treatment for Income Tax purposes
    This link will answer your query.
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  • you always should show all the property sales in your tax return
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  • Originally Posted by vaibav123
    Did you sell an u/c property or after taking possession?
    This question is important.
    Treatment of loss:Capital Loss: Treatment for Income Tax purposes
    This link will answer your query.


    Thanks for your

    It was still under-construction.

    As per the link mentioned by you, it need to be shown in ITR if one wants to carry forward the losses.

    So my questions remains same;

    Q1. Is above mentioned calculation correct?
    Q2. If yes, do I need to show it my ITR (I am salaried person)

    Q3. How to show lossed in ITR?
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  • There are five heads of Income sources as per Tax law.
    Yes you should show this loss under "income.from Capital Gain" and this loss can be carry forward for next eight years and will be set off with the income which you may earn from LTCG IN COMING 8 year..

    I didn't verified CII, if that is correct than the calculation is also correct

    Sent from my GT-I9082 using Indian Real Estate Forum mobile app
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  • If it was under construction property if will not classify in the long term capital gain. It will be a short term capital gain.
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  • Yes I am also told that you can claim Long Term Gain only on registered property. Also the rebate in income tax on housing loan interest can also be claimed only when the property is RTM.
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  • miketest,
    When an u/c property is booked and allotted by builder you get a right to get the described property after completion subject to fulfilment of terms and conditions as per registered agreement.
    If the property is not completed and sale takes place in u/c stage after three years from allotment,LTCG is applicable.
    What I say about LTCG may be confirmed from some CA.
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  • Originally Posted by vaibav123
    miketest,
    When an u/c property is booked and allotted by builder you get a right to get the described property after completion subject to fulfilment of terms and conditions as per registered agreement.
    If the property is not completed and sale takes place in u/c stage after three years from allotment,LTCG is applicable.
    What I say about LTCG may be confirmed from some CA.


    So the property becomes a capital asset right at the time of booking only?
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  • As I understand -right to property is only when it is u/c and sold as u/c after three years for benefit of LTCG.
    Once flat gets completed then one has to wait further three years for sale to take advantage of LTCG
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  • Guys this is how it goes:-
    Scenario 1- If am the original buyer of the U/C property and i sell it off after 4 yrs still in U/C state. Short term capital gain is applicable to me.
    Scenario 2- If am the original buyer of the U/C property, i get the possession after 4 yrs and i sell it off 6 months after registering the property. Long term capital gain is applicable to me.

    Scenario 3- I buy an U/C property in resale and get the possession after 3 yrs. The day i register the property, from that day my right to property will start and i need to hold the property for 3 yrs in order to avoid the short term capital gain tax.
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  • VIKS1710,
    Actually scenario 1 and 2 need to be interchanged.
    I think your understanding of scenario and 1 and 2 is incorrect.
    This is my understanding.
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  • As per rule, long term capital gain will be applicable if you sell your property 3 year after date of booking or registration date (which ever is later). So, if you book a property and sell it after 3 years of booking and before registration, it will be LTCG.

    Please Check the replies in RED..

    Originally Posted by VIKS1710
    Guys this is how it goes:-
    Scenario 1- If am the original buyer of the U/C property and i sell it off after 4 yrs still in U/C state. LONG term capital gain is applicable to me.

    Scenario 2- If am the original buyer of the U/C property, i get the possession after 4 yrs and i sell it off 6 months after registering the property. Short term capital gain is applicable to me.

    Scenario 3- I buy an U/C property in resale and get the possession after 3 yrs. The day i register the property, from that day my right to property will start and i need to hold the property for 3 yrs in order to avoid the short term capital gain tax.

    Property can be taken in resale or fresh booking. if you sell it after 3 years from date of your purchase/booking and before registry, its LTCG. And if you go for registry, then you need to hold the property for 3 year more from date of registration to avoid STCG.

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  • scenario: person books a property in 2005 and get possession and registry done in 2012.
    As per above comments it seems that if he sells the property after 5 years after booking in 2010, it will be long term capital gain but if he sells it after 10 years of booking in 2014 it will be short term capital gain. Rule is laughable and complicated and no body seems to actually know the rule correctly. Even on internet there are all type of arguments and court rulings supporting all types of arguments.
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  • Guys ,
    Sorry but the understanding which you are giving is not right .
    Verfied through various CA's as well as IT person the STCG or LTCG is only calculated from the date of allotment . There are various circulars which hv been mentioned that Date of allotment can always be taken for calculating the capital gain .
    Also it is never that after registry 3 yrs will agn start.
    If you wana verify , will confirm you circulars also

    Sent from my SM-N900 using Indian Real Estate Forum mobile app
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