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Old March 15 2012, 02:39 PM   #11
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hello friends
I booked an apartment in 2008 ( clp plan) and it is still under construction ( have paid about 40 lacs). i want to sell it now ( expecting 72 lacs saleabale value) but i have no possession. my question is what will be the capital gains tax liabailty and are there any exemptions
thanks
shalu
 
Old March 16 2012, 02:11 PM   #12
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Quote:
Originally Posted by shalu73 View Post
hello friends
I booked an apartment in 2008 ( clp plan) and it is still under construction ( have paid about 40 lacs). i want to sell it now ( expecting 72 lacs saleabale value) but i have no possession. my question is what will be the capital gains tax liabailty and are there any exemptions
thanks
shalu
\


Yes there will be capital gain, unless you invest all the proceedings from the sale in a new property with 6 months of sale.
 
Old March 16 2012, 02:23 PM   #13
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Quote:
Originally Posted by Indireal View Post
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Yes there will be capital gain, unless you invest all the proceedings from the sale in a new property with 6 months of sale.
I believe that applicable only for long term capital gain, sale after at least 3 years of possession.

Sale of under construction property would attract short term capital gain, wait for more experienced members to confirm
 
Old March 16 2012, 05:44 PM   #14
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- If you sell underconstruction flat, then the profit is considered as Short term capital gains if sold before 3 years from 'booking date' OR Long term capital gains if sold after 3 years from 'booking date'.

-If you sell after possession is given, then the profit is considered as Short term capital gains if sold before 3 years from 'possession date' OR Long term if you sell it 3 years after 'possession date'.

- Short term capital gains are added to your income and you need to pay tax as per usual slabs/rates.

- Long term capital gains tax rate is 20% which can be avoided if invested in the purchase of another house either one year before or within two years from the date of transfer, or used for construction of a house within three years of the date of transfer.

In your case since you booked in 2008, will be considered as Long Term gains.
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Old May 27 2015, 06:04 PM   #15
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Digging up this old thread.
My query is :
For example (for sake of simplicity)
- I booked 1000 sqft flat for 4000 PSF when project was pre - launched. And paid 30% Down payment that is 12 Lacs.
- The builder launches the project and I find a buyer at 5000 PSF.
How much will be my profit in this case?
Will it be
5000x1000x30% ie 15 Lacs minus 12 Lacs (which I paid on booking) = 3 lacs
OR
It will be difference of the flat cost that is,
5000psf x 1000 sqft = 50 Lacs (selling price)
Minus
4000psf x 1000 sqft = 40 Lacs (buying price)
Which equals to 10 Lacs.

How will be the payments made as it will be CLP.

Hope I m putting my query properly.
Please advise.
 
Old May 27 2015, 06:13 PM   #16
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Quote:
Originally Posted by alpha123 View Post
Digging up this old thread.
My query is :
For example (for sake of simplicity)
- I booked 1000 sqft flat for 4000 PSF when project was pre - launched. And paid 30% Down payment that is 12 Lacs.
- The builder launches the project and I find a buyer at 5000 PSF.
How much will be my profit in this case?
Will it be
5000x1000x30% ie 15 Lacs minus 12 Lacs (which I paid on booking) = 3 lacs
OR
It will be difference of the flat cost that is,
5000psf x 1000 sqft = 50 Lacs (selling price)
Minus
4000psf x 1000 sqft = 40 Lacs (buying price)
Which equals to 10 Lacs.

How will be the payments made as it will be CLP.

Hope I m putting my query properly.
Please advise.
I believe that the cost of indexation will apply where possession is received; so in the case of under construction sale (assuming builder permits, which is rare), the sale price minus cost paid till the sale date would be the capital gains. While accountant will know accurately on the exact deductions if any.
 
Old May 27 2015, 09:18 PM   #17
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Quote:
Originally Posted by rsrsin View Post
I believe that the cost of indexation will apply where possession is received; so in the case of under construction sale (assuming builder permits, which is rare), the sale price minus cost paid till the sale date would be the capital gains. While accountant will know accurately on the exact deductions if any.
Thank you for your reply.
I am not able to understand what u want to convey.
I request u to advice me in layman terms as to profit will be only on 30% Or complete cost of the flat.
We can leave aside the taxations for my better understanding.

Thanks again.
 
Old May 28 2015, 11:47 AM   #18
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Quote:
Originally Posted by alpha123 View Post
Thank you for your reply.
I am not able to understand what u want to convey.
I request u to advice me in layman terms as to profit will be only on 30% Or complete cost of the flat.
We can leave aside the taxations for my better understanding.

Thanks again.
Profit may end up being sale price minus cost price (i.e. what one has paid to builder/seller till prior to the sale). Funds paid by buyer towards purchase is not considered as profit - that is own/principal contribution

 
Old May 28 2015, 05:01 PM   #19
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Quote:
Originally Posted by alpha123 View Post
Digging up this old thread.
My query is :
For example (for sake of simplicity)
- I booked 1000 sqft flat for 4000 PSF when project was pre - launched. And paid 30% Down payment that is 12 Lacs.
- The builder launches the project and I find a buyer at 5000 PSF.
How much will be my profit in this case?
Will it be
5000x1000x30% ie 15 Lacs minus 12 Lacs (which I paid on booking) = 3 lacs
OR
It will be difference of the flat cost that is,
5000psf x 1000 sqft = 50 Lacs (selling price)
Minus
4000psf x 1000 sqft = 40 Lacs (buying price)
Which equals to 10 Lacs.

How will be the payments made as it will be CLP.

Hope I m putting my query properly.
Please advise.
I believe ur profit would be 10 lakhs in this case.. U need to ask the buyer to pay u 22 lakhs (12 lakhs paid by u + 10 lakhs appreciation). Remaining 28 lakhs, he will pay to builder like u wld hve paid otherwise..
 
Old May 28 2015, 10:09 PM   #20
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Thank u 1stbuy, my doubt is clear.
 
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