Allotment Letter-Capital gains tax

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? your earlier responses it mentions 'date of deed-registration' this case no deed is signed then should there be capital gains even then?

asked May 13 '13 at 09:02 by Deep555 111

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.

answered May 13 '13 at 12:53 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: May 13 '13 at 09:02

Seen: 2,399 times

Last updated: May 13 '13 at 12:53