Sell of a flat to buy a residential plot - implication on Capital Gain

Dear Sir, I had booked a flat in 2005 and kept paying the billed amount as per progress of construction. The flat is now ready in 2011. Sale deed is registered in April 2011, In the sale deed by builder has mention of the proportionate portion of the share of undivided land. There is a seperate construction agreement which is not registered. Now, if one sells the flat in say July2011 and buys a residential plot in Aug2011 what are the capital gain tax implecations? The total purchase value of the residential plot is more than the total sale value of the flat. Also want to start construction of house in few months. Sale value of the flat is more than the cost of proportionate portion of land and flat construction cost together. Apprecaite if you please clarify. Regards

asked Aug 07 '11 at 16:53 by Green123 1111


As registration and possession happened in 2011 and you want to sell it in same year, gains will be considered as short term gains.

The gains from selling the flat will be added to your taxable income and taxed as per your slab rates. There is no exemption available for short term gains.

answered Aug 07 '11 at 23:07 by pankaj 5.2k320

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Asked: Aug 07 '11 at 16:53

Seen: 1,563 times

Last updated: Aug 07 '11 at 23:07