How to Compute Capital Gains on Sale of a Property?

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  1. gaurav_kumar

    gaurav_kumar Well-Known Member

    The agreement which you entered into in 2011 gave you a right in the property. Therefore, the date of acquisition would be considered as June 2011 and you have held this flat for more than 3 years.

    Therefore the gains arising in your hands are Long Term Capital Gains. It does not matter if the property sold is under construction or not.

    You can still claim exemption from tax on capital gains by reinvesting the capital gains in specified bonds of NHAI/REC or by investing in another Residential House
  2. amit_k_13

    amit_k_13 New Member

    Dear Gaurav Sir,

    My Kind Regards and thanks to you for your support. I have few query :

    1. My mom is having a property in Mumbai purchased in May 2011 Agreement value Rs 28lkhs ( Market value was 38 lkhs)
    The value was less than market value. We have paid stamp duty on 38 lks. Do we as a Buyer have to pay income tax on the Difference amount of Rs 10lkhs for Transaction done in May 11 as after 01-4-2014 the buyer has to pay income tax on the difference amount. What is our Tax liability as a Buyer in this case

    2. My Mother wants to transfer the property in my Name by Gift Deed so the stamp duty to be paid is 2% , registration fee 1% and society fee 25ooo.
    Do i have to also pay TDS of 1% for Gift deed Transfer from my Mother.

    3. Can i sale the property received as a Gift Transfer immediately or is there any restriction time boundation for selling it.

    4. In case i sell this Gifted property how the capital gain will be calculated. whether it will be on Agreement value of Rs 28 lks from May 2011 or Market value Rs 38 lks from May 2011 or how will the capital gain be calculated in case of property received from Gift Deed transfer from my Mother.

    5. Property purchased in May 2011 and suppose sold after Jan 2015. Then Capital Gain will be Short term or Long term
  3. gaurav_kumar

    gaurav_kumar Well-Known Member

    1. In this case - as a buyer, you dont have any tax liability.
    2. In case of Gift from Mother, TDS @1% wont be applicable
    3. Yes, you can sale the property received as gift at any time. There is no restriction on sale.
    4. The Cost of Acquisition in this case would be considered as Rs. 28 Lakhs
    5. Capital Gain in this case would be long term as the property has been held for more than 3 years.
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