INDEXATION CALCULATION - L.T. CAPITAL GAIN

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  1. M S Jain

    M S Jain New Member

    Dear Sir,

    1) I had purchased a flat in Mumbai on 21st June2005 for a sum of 13 Lacs, and builder gave allotment letter of same date and receipts only. 95% amount was paid and 5% was to be paid on possession.

    2) The builder did not register the flat or did not even do agreement with us in 2005, until 2012. With several verbal attempts and later since 2010 we gave him notice through lawyer for registration of flat. The same flat was registered on : 15 Dec 2012, after lawyer’s notices. The flat was registered as per government reckoning value of Rs.32.5 Lacs. I have also paid M-VAT and Service Tax to the builder as per government resolution.

    3) The flat was sold on 10th March 2016 for a sum of Rs. 63 Lacs, and I intend to purchase another flat with the Long-Term capital gain amount. I feel in both cases (Allotment Letter Date & Agreement Date), I am eligible for Long Term Capital Gain. Kindly clarify on this point.

    4) Secondly, how much capital gain amount should I consider with below points

    a) Difference in Sale Price and Purchase Price. i.e. Actual Capital Gain (CG) Amount.

    b) How do I reduce the CG Amount by adding the indexation value. i.e. Should I calculate indexation value from Allotment Letter Date –June 2005 or from Agreement Date – Dec 2012.

    c) Also, should I consider reducing the M-VAT and Service Tax amount from CG Amount along with indexation value.

    5) How many years of time I have to purchase another flat to avail CG scheme.

    6) After putting the CG amount in CGAS account in a bank, should I consider to transfer the amount directly to builder or can I transfer the sum in my SB account, before paying to builder.
     
  2. ZED

    ZED Well-Known Member

    Sir your case is a peculiar one,there are several conflicting judgements and therefore I will have to refer to several judgements. I also need to know the jurisdiction in which you come, like from which State you are.

    For detailed information, you may contact me through mail.
     
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