Another new project in Noida :

sunshinehelios.com

Website is excellent, no idea about ground reality..Even could not find the builder details..But the concept and amenities are excellent..

Has anyone got any clue about builder and any completed project by him.

Surprisingly no broker is also talking about this project.
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  • Originally Posted by fatichar
    I have attached the relevant document here.

    https://www.indianrealestateforum.com/forum/city-forums/ncr-real-estate/noida-real-estate/15399-long-term-capital-gain/page2?t=17626&page=2

    Refer page 26. As per my understanding, the allotment of UC house can be termed as a normal investment, not residential. So gains made by selling it after 3 years fall under long term capital gains, and taxed accordingly. But they can not be invested in another house to get complete tax exemption, as for that case both investments have to residential properties, not "right to acquire property", which the allotment letter is.

    Yes, still this is definitely a grey area. But at least there is a chance.


    Great doc. One thing not understood ; same page

    The amount which is deposited in the Capital Gains
    Deposit Account has to be utilised by him for the purpose of
    purchase/ construction of the new residential house within two/

    three years from the date of transfer, respectively.


    Do we need to open new account "Capital Gains Deposit Account" and use this account only for transactions.??
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  • Yes, to claim tax exemption for purchase/construction of new house, capital gains account has to be opened, amount put in the account, and spent for the new house. the amount that does not follow this procedure would be taxed using LTCG tax.
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  • Originally Posted by fatichar
    Yes, to claim tax exemption for purchase/construction of new house, capital gains account has to be opened, amount put in the account, and spent for the new house. the amount that does not follow this procedure would be taxed using LTCG tax.


    On same document, if you read page 6 - Sale is defined as when 'title in the property is exchanged for a price'. But title of the under-construction flat is in name of builder and not the allottee. Only after registration happens and possession is taken the title gets acquired. I think 3 year period is starts after you acquire the ttitle, this is my interpretation but you should confirm this from an expert.
    Also, if a house is sold within five years of the end of the financial year in which it was purchased, all the deductions claimed under Section 80C with respect to the property are added to the taxable income in the year of sale.
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  • Originally Posted by propseeker
    On same document, if you read page 6 - Sale is defined as when 'title in the property is exchanged for a price'. But title of the under-construction flat is in name of builder and not the allottee. Only after registration happens and possession is taken the title gets acquired. I think 3 year period is starts after you acquire the ttitle, this is my interpretation but you should confirm this from an expert.
    Also, if a house is sold within five years of the end of the financial year in which it was purchased, all the deductions claimed under Section 80C with respect to the property are added to the taxable income in the year of sale.

    Yes, UC property is not considered as property. So if you sell it after 3 years n buy a new house, you wont get tax exemption. But any investment (not just property) held for 3 years qualifies for LTCG. That is what my plan is. If I sell after 3 years of allotment, the profit would be taxed as per LTCG, which is much lower than that for STCG.
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  • As pointed by other member, number of years counting for LTCG in case of residential houses begins when you get the possession and the period of construction is not considered for LTCG. To extend it further, there are different types of long term investments. The taxation rates and the corresponding periods for LTCG are different. Equity, Bonds, gold, real estate all have different periods, for considering them long term investment.
    So, pl. take expert advice, before planning to sell it near the project completion, since you might end up being liable for full tax, instead of getting LTCG advantage.:)
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  • Originally Posted by fatichar
    Yes, to claim tax exemption for purchase/construction of new house, capital gains account has to be opened, amount put in the account, and spent for the new house. the amount that does not follow this procedure would be taxed using LTCG tax.


    lag gai mere ... ab kya karey ...... i have done transaction from my seleried account ..... koi upay batao ?
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  • Originally Posted by Prudent
    As pointed by other member, number of years counting for LTCG in case of residential houses begins when you get the possession and the period of construction is not considered for LTCG. To extend it further, there are different types of long term investments. The taxation rates and the corresponding periods for LTCG are different. Equity, Bonds, gold, real estate all have different periods, for considering them long term investment.
    So, pl. take expert advice, before planning to sell it near the project completion, since you might end up being liable for full tax, instead of getting LTCG advantage.:)


    Pravin,

    This question has come up several times but still warrants some clarity. Do you know any CA/tax consultant who could clarify this? I now plan to do the same but, unfortunately, don't know anyone in India in the tax area. Trusting google or going ahead with our own assumptions/interpretations might note be wise.
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  • Originally Posted by shaitaan
    lag gai mere ... ab kya karey ...... i have done transaction from my seleried account ..... koi upay batao ?


    Friends, I came across this website that gives its own perspective, and a happy one for the situation under discussion. Ofcourse, I do not know the veracity of this article. However they are quoting case laws and various judgements to back their 'opinion'. Here you go. http://taxguru.in/income-tax/taxability-capital-gain-sale-construction-property-nature-gain-date-indexation-availability-benefit-section-54-54ec.html
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  • No guys, no CA worth his salt is known to me. Do not consult just any CA. I recently met a CA in Pune who said that only the profit part has to be invested in new house. This is not true.

    Shaitaan, you should really consult someone ASAP, as you already are inside the mud :)
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  • Originally Posted by fatichar
    No guys, no CA worth his salt is known to me. Do not consult just any CA. I recently met a CA in Pune who said that only the profit part has to be invested in new house. This is not true.

    Shaitaan, you should really consult someone ASAP, as you already are inside the mud :)


    yaar ye panotee kab mera peecha chooregee?? I will definately, consult someone.. Thanks...

    Lagtaa hai kal daru penee paregee.... sorry
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  • Originally Posted by fatichar
    No guys, no CA worth his salt is known to me. Do not consult just any CA. I recently met a CA in Pune who said that only the profit part has to be invested in new house. This is not true.

    Shaitaan, you should really consult someone ASAP, as you already are inside the mud :)


    As I know only gain part has to be invested in New residential just as one needs to pay tax on gain part only..
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  • Originally Posted by cookie
    As I know only gain part has to be invested in New residential just as one needs to pay tax on gain part only..


    I have bought in 2002 Rs 18 lac... and sold 2012 ... 62 Lac... all payment did through from my salaried account, i thought you just need to invest in real estate, the whole money,, but here the situation is diff. You need to open separate account as advised by fatichar sir...

    how much tax now i need to pay? the diff. is 62-18 = 44 lac.
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  • Originally Posted by shaitaan
    I have bought in 2002 Rs 18 lac... and sold 2012 ... 62 Lac... all payment did through from my salaried account, i thought you just need to invest in real estate, the whole money,, but here the situation is diff. You need to open separate account as advised by fatichar sir...

    how much tax now i need to pay? the diff. is 62-18 = 44 lac.

    30 percent of 44 lac only as tax if you are not investing 44 lac in residential..
    If you are investing only 50 percent of 44 lac in that case you need to pay tax on 22 lacs only...


    Yes you need to maintain separate account.. but its not hard and fast rule. if you have cheques photo copy anf bank statement even that would do though I cant confirm on this.
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  • Originally Posted by cookie
    As I know only gain part has to be invested in New residential just as one needs to pay tax on gain part only..

    Yes, I read the doc again, and found that what you wrote is correct.

    This are much better now!


    Shaitaan,

    you can pay either

    1. 10% of 44L = 4.4 L

    or

    2. apply indexation to 18L, meaning the present value of "18L in 2002". This would roughly be around 40L. Now gain = 62 - 40 = 22L. Pay 20% tax on this = 4.4 L

    Both same :)
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  • Hello Cookie bhai.. Just checked your address.. have you moved to Gurgaon??

    Thanks
    Alok
    CityKirana.com - online Grocery store in Delhi, Noida, Ghaziabad, Indirapuram, Gurgaon, Buy Online Kirana Items
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