Capital Gains Exemption - Investment without Registration

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  1. Rekha Krishan

    Rekha Krishan New Member

    Capital gain issue - reinvestment in another residential property
    Please clarify whether merely reinvesting capital gain in another property meets the need or is registration of property necessary within the two year window . The seller of the resale property which I am buying is out of country and hence unable to be present for registration. .
     
  2. Parul_Gupta

    Parul_Gupta Active Member

    There should be a proper documented evidence indicating that you have purchased property which will also give you a legal right over that property.

    Mere payment is not sufficient.
     
  3. Rekha Krishan

    Rekha Krishan New Member

    So what documents are required. My question was can registeration be done after the 2 year window is over ?
     
  4. Parul_Gupta

    Parul_Gupta Active Member

    Yours is a genuine case as the seller is not here in India. Therefore, the registration can be done after 2 years.

    However, there should be proper documents to ensure that the payment had been made before 2 years but registration could not be done only because the seller was not here in India.

    Therefore, there should be proper agreement to sell on a Stamp Paper mentioning the payments made.
     
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  5. Rekha Krishan

    Rekha Krishan New Member

    A
     
  6. Rekha Krishan

    Rekha Krishan New Member

    Under capital gains exemption, can we buy a property which is not yet complete ;
    My 2 years are almost over after sale of my property and I am wanting to buy an apartment which will be completed in 6 months more! (before the 3rd year gets over ) So does the rule of under construction apply only to self built houses or even to projects by builders which are in process
     
  7. rudrabose

    rudrabose Active Member

    Yes, you can buy the under construction property and claim exemption.
     
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  8. Rekha Krishan

    Rekha Krishan New Member

    I have bought a property under capital gains recently. My 2 year window under capital gains expires in two days.
    apart form agreement value, I am told broker charges, CA consultancy charges ,Legal charges, stamp duty , registration, and property survey charges which I have incurred in the purchase of the property are permitted to be paid from the Capital gains account and can be included for exemption. Is that right ?

    Also can property fire insurance, and additional civil works I undertake in the property to make it livable be allowed. The Kitchen has mere platform and waterconnection !! I need to make additions to make it usable !!
    what other categories can I claim under capital gains exemption?
     
  9. rudrabose

    rudrabose Active Member

    Yes the stamp duty charges, broker charges etc would be added to the Cost of Acquisition.

    The expenses which you incurr for improving your kitchen and other parts of the house can be claimed as cost of construction.

    The window for purchasing the house is 2 years and for constructing/renovating the house is 3 years.
     
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