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Long Term Capital Gains from Property

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Long Term Capital Gains from Property

Last updated: February 1 2015
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  • Long Term Capital Gains from Property

    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
  • #2

    #2

    Re : Long Term Capital Gains from Property

    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.

    Comment

    • #3

      #3

      Re : Long Term Capital Gains from Property

      you always should show all the property sales in your tax return

      Comment

      • #4

        #4

        Re : Long Term Capital Gains from Property

        Originally posted by vaibav123 View Post
        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?

        Comment

        • #5

          #5

          Re : Long Term Capital Gains from Property

          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

          Comment

          • #6

            #6

            Re : Long Term Capital Gains from Property

            If it was under construction property if will not classify in the long term capital gain. It will be a short term capital gain.

            Comment

            • #7

              #7

              Re : Long Term Capital Gains from Property

              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.

              Comment

              • #8

                #8

                Re : Long Term Capital Gains from Property

                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.

                Comment

                • #9

                  #9

                  Re : Long Term Capital Gains from Property

                  Originally posted by vaibav123 View Post
                  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?

                  Comment

                  • #10

                    #10

                    Re : Long Term Capital Gains from Property

                    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

                    Comment

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