Have bought an under construction property. No agreement but only Allotment Letter. Property shall take 2 years to be constructed. At the end of 2 years instead of signing the agreement and taking possession if I sell it will this still attract capital gains tax...when shall the date for calculating capital gains tax be considered-date of allotment letter?...in your earlier responses it mentions 'date of deed-registration'....in this case no deed is signed then should there be capital gains even then?
1 Answers
Until possession is taken, it would be a normal capital asset and not residential house property. If this capital asset is sold before three years of booking/allotment, it would be short term gain.
This short term gain would be taxable as per income tax slab rates and no exemption/deduction rules would be applicable.
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