Long term capital gain

Hi

I booked a flat in May 1997 for 7 L and got possession in May 1998. I took loan from the bank for 5 L and repaid the full loan in october 2005. Due to scsrcity of funds I could get the registry done only in august 2006. I sold the flat in september 2007 for 15 L and invested the entire amount in another flat in year 2008 taking more loan in the same year.

Do I have to pay capital gains. Will they consider the date of possession or the date of registry.

Thanks

asked Jul 27 '11 at 15:55 by seemu 1122


As due to unavoidable circumstances, you were not able to get registration done for flat, you may consider possession date for capital gains computation purposes. There have been cases in past in which court has ruled in favor of possession date.

As you also bought another flat with cost more than the capital gains earned from selling old flat, income tax on capital gains will be nil.

answered Jul 28 '11 at 11:57 by pankaj 5.2k320

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Asked: Jul 27 '11 at 15:55

Seen: 1,354 times

Last updated: Jul 28 '11 at 11:57