Capital gains indexation.
Querist :
Anonymous
(Querist) 05 May 2011
This query is : Resolved
The Agreement to sell was signed with the Builders and registered in Dec 2004 in which it was mentioned that right to sell wud arise only on full payment of consideration. Last payment made in Dec 2007 and receipt was acknowledged. Occupancy certificate not yet issued. Possession taken immediately i.e. property was rented out, without any formal document being signed. Society is yet to be formed. The flat is now being sold by us and Agreement to sell has been signed in April 2011 for which a transfer fee has to be paid to builder.
My queries : 1. What is the date of acquisition for capital gain purposes and what is the base year to be taken for indexation purposes...Dec 2004 or Dec 2007?
2. What is the last date for depositing CG in CG deposit account if last of sale proceeds is received in Aug 2011?
3. In case a new property is purchased within 2 years from such deposit account, CG tax wud not be charged. 2 years is to be considered from which date : Date of agreement to sell or Date of receipt of last of the sale proceeds?
Urgent answer required.
Thanks in advance.
soumitra basu
(Expert) 05 May 2011
Answers:
1. 2007
2. Deposit in Bond - within 6 months from the date of the sale. Deposit in Capital Gain Scheme - Before July, 2012.
3. 2 years from the date of sale.
Querist :
Anonymous
(Querist) 05 May 2011
Dear Mr. Basu, thank u very much for the reply.
Querist :
Anonymous
(Querist) 06 May 2011
However, if Stamp duty and registration expenses of Rs. X are paid in 2004-05 and last of total sale proceeds of Rs. Y are paid in 2007-08, will the base year be 2004-05 for X and 07-08 for Y or 2007-08 for X+Y ?
