Urgent capital gain query

Your income shall be taxed under SEction 41 of the IT Act any income that arise out of dispute is taxable. You shall get benefit of provisions of Capital Gain. 

Your Query: "There is a flat which is for more than 3 yrs in the book of accounts later it was sold

Thank u sir for enlighting us my further query is

The said flat is for the investment but as i am unable to pay the further payment builder will sell it to someone else

I still have the Allotment letter the building is complete

Builder says he will pay me the monies back with certain reasonable appreciation Will these amounts Short term Capital Gains?

suppose immediately i buy new flat to adjust the gain of old flat mentioned in my previous query then does it amounts to addln income for that year and amount will be taxable in short how can i save on tax

Your further query:The said flat is for the investment but as i am unable to pay the further payment builder will sell it to someone else

I still have the Allotment letter the building is complete

Builder says he will pay me the monies back with certain reasonable appreciation Will these amounts Short term Capital Gains?

suppose immediately i buy new flat to adjust the gain of old flat mentioned in my previous query then does it amounts to addln income for that year and amount will be taxable in short how can i save on tax

Reply:

1. You may not get the benefit under S 54F for the investment in the  'said' Flat, as it has not been formally registered in your name in the official records of the Stae revenue/ local admin. authorities. Mere Allotment Letter issued to you at the time of booking, is not relevant/ enough. As it is, you have not obtained the ownership of the said Flat, but only a right for allotment on full payment to the builder.

2. The premium you may get from the Builder on his selling the Flat to a 3rd person, will be taxable in your hands, as your profit on sale of your right for allotment of the flat. It will be short term/ Long Term depending on the period for which you held the right. If it is a long term gain, the gain will be exempt in your hands if you  construct/buy a new Flat within  years/3years thereafter.

3. For advice on how to save on tax, better personally consult a Tax Practitioner, so that the various aspects of your case can be discussed with him.