Capital gain
Rupesh
(Querist) 04 July 2014
This query is : Resolved
One my client purchased a residential plot in 2009 and construction completed in 2013 and sale it in 3 parts as floors. First sale of one floor in March-2014 and another two floors in April & May-2014. In which way we will take capital gain. will take plot as long term and construction cost in short term capital gain?
Please clear
Anirudh
(Expert) 04 July 2014
YES you are correct.
T. Kalaiselvan, Advocate
(Expert) 06 July 2014
A long-term capital gain arises when you hold any asset for a defined period. This period ranges from one year to three years across different asset classes. It is three years for real estate cases.
Investment in any asset class, if held for a very short period, is taxed as short-term capital gains. Except equity, short-term gains from other assets are included in the investor's income and are taxed as per the slab rate.
Hope the above explanation will convince you the position?
