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Helios by Sunshine Developers in Sector 78, Noida

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Helios by Sunshine Developers in Sector 78, Noida

Last updated: August 14 2017
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  • Re : Helios by Sunshine Developers in Sector 78, Noida

    Originally posted by prosper View Post
    Hi, I guess this has to do with the aplicability of long term capital gains. I was under the impression that this is a grey area. I am sure u would have done ur research, can u point me to where I can read/ know more from. Thanks. I have a similar situation unrelated to SSH. Cheers
    I have attached the relevant document here.

    http://www.indianrealestateforum.com...-page2.html#11

    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.

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    • Re : Helios by Sunshine Developers in Sector 78, Noida

      Originally posted by fatichar View Post
      I have attached the relevant document here.

      http://www.indianrealestateforum.com...-page2.html#11

      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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      • Re : Helios by Sunshine Developers in Sector 78, Noida

        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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        • Re : Helios by Sunshine Developers in Sector 78, Noida

          Originally posted by fatichar View Post
          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.

          Comment


          • Re : Helios by Sunshine Developers in Sector 78, Noida

            Originally posted by propseeker View Post
            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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            • Re : Helios by Sunshine Developers in Sector 78, Noida

              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.

              Comment


              • Re : Helios by Sunshine Developers in Sector 78, Noida

                Originally posted by fatichar View Post
                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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                • Re : Helios by Sunshine Developers in Sector 78, Noida

                  Originally posted by Prudent View Post
                  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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                  • Re : Helios by Sunshine Developers in Sector 78, Noida

                    Originally posted by shaitaan View Post
                    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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                    • Re : Helios by Sunshine Developers in Sector 78, Noida

                      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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