3 months, 3 weeks ago

How are the profits from transferring an under-construction property before taking possession taxed?

I booked a flat for ₹80 lakh in May 2022 and paid ₹70 lakh for the instalment cost. If the transaction goes through before the possession is taken, your profits would be taxed as long-term capital gains as the right in the property was acquired more than two years ago. Capital Gains Tax Explained for Flat Sale After Two Years of Booking Had you paid the last instalment to the builder and sold it immediately after taking possession, your profits would have been treated as short-term capital gains, as your right in the flat would have been converted into the residential flat itself. The acquisition cost remains at ₹80 lakh, and since you would not have held this new asset for over 2 years, your profits would be treated as short-term capital gains, which would be charged to tax at normal rates applicable to you. Thus, such profits, even after possession, should be treated as long-term capital gains if sold two years after booking.

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Tax Capital Flat Lakh Possession Two Years Gains Your Profits
Flat sale completed: What is the date of transfer for tax purposes? Is it the date of agreement or receipt of money?
3 months, 4 weeks ago

Flat sale completed: What is the date of transfer for tax purposes? Is it the date of agreement or receipt of money?

Live Mint
Tax

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