Computation of capital gains on sale of flats
srinivas
(Querist) 05 November 2008
This query is : Resolved
Mr.X being the owner of land has entered into a Joint Development Agreement in oct.2007. His share in the developed property is 8 units. He has purchased the property in 2004 May. He wants to retain 2 units and sell the remaining 6 units.
What is the date to be taken for calculation of capital gains?
whether it is a short term or long term capital gain If Mr. X sells his property now(NOV.2008)?
Whether the date of the joint development agreement or date of registration of flats to be taken for the purpose of computation of capital gains?
Manish Singh
(Expert) 09 December 2008
capital gain is to be calculated from may 2004. its a long term gain. while calculating capital gains, you need to include the price of structure built on the share you want to sell.
