capital gain

Querist : Anonymous (Querist) 21 January 2010 This query is : Resolved
Dear sir,
I have recently taken possession of an apartment which I had booked in 2004. 90% payment for the same was made by 2006. The apartment was however alloted to me by means of a computerized draw in July 2007. The final 10% payment was made in July 2009 and the possession of the house taken in Dec 2009.

I have now sold the apartment in Jan 2010 on power of attorney(the house cannot be sold until 03 years of possession as per the society rules).

I am investing the complete sales proceeds from this house in buying another apartment from a builder.

Could you please tell me that the gains by virtue of selling the apartment after applying the indexation factor will fall under long term capital gains or short term capital gains ? Am I liable to pay any tax ?

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Guest (Expert) 21 January 2010
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Raj Kumar Makkad (Expert) 21 January 2010
It is a short term capital gain and you are liable to tax accordingly.

soumitra basu (Expert) 21 January 2010
You can not claim it as short term capitl gain and therefore the indexation and investment in residential house under section 54 is not available to you. The gain is liable to be taxed as short term capital gain.

Kumar Thadhani (Expert) 22 January 2010
Sir even if you invest the sale proceeds of your apartment your investment does not qualify und erSect 54 so as to taxed under longterm capital gains nor the indexation cost of inflation will be applicable to you since it there is no sale agreement or the apartment held by in your possession is less than three years

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