capital gains calculation on sale of flat. Its re-investment and procedure.

Hi, I have purchased a under construction flat in the year 2009 at ghaziabad for 21 lakhs (all inclusive) under down payment scheme, part own contribution with a bank loan of 13 lakhs. the Builder buyer agreement was done the same year in aug 2009. The possession of the flat was given in march 2013, the registry was also done the same time (registry and stamp duty charges approx - 3 lakh). Now i bought another under-construction flat in pune under 40:60 scheme in the year 2012 (July month) for 42 lakhs as agreement value, initial amount of 21 lakhs including the registry, stamp duty, VAT and all govt charges (6 lakhs appx) were paid the same time to builder and govt agencies, its possession is due in Jan 2014. now i want to sell off the first flat bought in 2009 for 35 lakhs. My questions are : 1. The sale will be considered LTCG or STGC, and how to minimise the tax liability. 2. if considered LTCG can the money accrued out of sale of first flat be paid towards the amount due towards second flat bought in pune (amount due to builder is appx 26 lakhs to be paid on possession in Jan 14). 3. If the sale is considered STCG then can the amount paid towards EMI (appx 4 lakhs interest) and Registry and stamp duty charges be included towards own cost price of the flat. 4. I am a government officer with income only from salary. thanks

asked Nov 26 '13 at 12:53 by imukulgupta 11


As possession of house is not taken three years before sale, it would be a STCG. Whole gains would be added to taxable income and taxed as per slab rates. There is no provision to save tax from STCG.

Registry and stamp duty would be added to cost price of flat, but home loan interest cannot be added to it.

answered Nov 28 '13 at 13:19 by Pankaj Batra 5.2k320

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Asked: Nov 26 '13 at 12:53

Seen: 1,678 times

Last updated: Nov 28 '13 at 13:19