Capital gain on purchase of property


I plan to buy an under construction property for 1.5cr. The owner had bought it for 52 lacs and has paid all but 5 lacs. Possession is due in next few months. If I buy it now, I'll be paying 1.5cr but cost of the property will remain 52 lacs. How does this impact my tax returns?

Thanks Punit

asked Feb 07 '12 at 10:58 by Punit 12

Cost of new property would be maximum of government circle rate or registered deed value.

If registered deed is done for 1.5 crore and accordingly stamp duty is paid, your cost would be assumed as 1.5 crore.

But if you show property value in registered deed as 1 crore (which is, say, as per government circle rates in area) cost of such property would be assumed as 1 crore.

If you show value of property below government rate in registered deed, cost of property would still be considered as per govt rate.

answered Feb 10 '12 at 17:09 by Pankaj Batra 5.2k320


Know someone who can answer? Share a link to this question via Email, Twitter, or Facebook

Your answer
toggle preview

Follow this question

Once you sign in you will be able to subscribe for any updates here

Markdown Basics

  • *italic* or __italic__
  • **bold** or __bold__
  • link:[text]( "title")
  • image?![alt text](/path/img.jpg "title")
  • numbered list: 1. Foo 2. Bar
  • to add a line break simply add two spaces to where you would like the new line to be.
  • basic HTML tags are also supported



Asked: Feb 07 '12 at 10:58

Seen: 1,004 times

Last updated: Feb 10 '12 at 17:09