Flat Resale Capital Gain

Hello Sir, I purchased an under construction flat for 75lacs. The sale deed was done for 25lacs against the undivided shared of land and the builder stated in sale deed that purchaser is getting the apartment constructed by the vendor and purchaser owns the cost. I would like to sell the flat for 85lacs and it attracts STCG tax as its less than 3 years since the sale deed was executed. Can I include the flat construction value 50lacs (75-25) to the purchase price of the property and calculate STCG tax on 10lacs (85-75) ? If not, what will be my tax liability on this sale. Thanks for your help.

asked Mar 11 '12 at 00:23 by Alex 1111


You can show construction cost in order to compute short term gains, but you need to have proper proof for construction cost. Payment receipts to builder, material supplier, architect etc would act as proof of construction cost.

If you unable to show same, short term gains would be 85-25 lakh and whole of this gain would be added to your taxable income and taxed at slab rate (would be around 30.6% tax).

answered Mar 13 '12 at 22:47 by Pankaj Batra 5.2k320

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Asked: Mar 11 '12 at 00:23

Seen: 1,703 times

Last updated: Mar 13 '12 at 22:47