capital gains on flat sale

acc123 1
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Hi Pankaj,

I have purchased a Flat on Jan 2007 and registered the title in Jan 2007itself for the UDS mentioned. This is a multistorey apartment. I bought this apartment for forty lakhs. I had a sale agreement also for forty lakhs and a sale deed for the UDS in jan 2007 itself.

I started using the apartment in Jan 2009. Then I sold the apartment in Apr 2011 for 55 lakhs.

Cost of Indexation = 4000000 * 711/519 = 5479768 Long term capital Gain = 5500000 - 5479768 - 130000 (Brokerage) = -109768

So now I am incurring loss, can I claim this in my next year tax return.

Please confirm.

Some were saying that this should be short term capital gain. I paid around 35 lakhs before march 2009 itself for this property. Please clarify,

Thanks acc

residential-flat capital-loss long-term-gains
1 Answers

Purchase year can be considered when registered deed was done in your name. So if same was done in Jan 2007, this gain should be considered as long term gain.

Also, as you sold flat in April 2011, CII for 2011-12 needs to be used which is 785.

Indexed Purchase price = 4000000 x (785/519) = 6050096
Long term capital gain = 5500000 - 6050096 = -550096

You can adjust this long term loss against any long term gain in next income tax return.

Pankaj Batra5212
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