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cost inflation index for purchase of property in installments

purchased flat in installments on 1993 got possession on 2004 sold on 2014. cost inflation index to be calculated from 1993 in yearwise calculation.

 

thanks

 

Dear Balbir,

Any payments made before completion / possession has to be index from the year of possession only. (not before that)

Any payments made after completion / possession has to be index from the year of payment.

Kind Regards
TaxReply.com

As per my view, total cost of the flat (whether paid in lump-sum or in installments) shall be indexed from the year of acquisition only. It shall be not indexed as and when the payments are made. In other words, only the index applicable to year of acquisition of flat shall be applied to the total cost and accordingly, the gain shall be calculated. It does not matter whether the cost is paid in lump-sum or paid in installments. The fact that some installments are paid before acquisition and some are paid after acquisition would not affect the calculations. (The term used is 'Cost inflation index of the year in which the asset is acquired by the assessee i.e. the year in which asset first held by the assessee). 

 

Manoj 

UR RIGHT HAS BEEN CREATED AS AND WHEN AGREED TO TAKE THE PROPERTY .IN MY VIEW INFLATION INDEXATION SHOULD BE TAKEN YEARWISE. UR RIGHT HAS BEEN CREATED IN THE PROPERTY WHEN U SIGN THE AGREEMENT TO PURCHASE AND GIVEN THE FIRST INSTALMENT TO THE PARTY.

Ref. comment by shri Aggarwal, in my opinion had the 'Right to property' was being sold then indexation would have applied on earlier instalments. Once the property comes into being, the indexation eligibility starts from date of possesion/ registration. 

It is rather unfair, but then it is aptly named 'tax' 

In case of  Immovable property  the date of  purchase  is considered when the agreement to purchase is signed therefore in this  case the indexation should be done from the date of agreement to purchase is entered.

 

Sir please advise if a immovable property is brought on instalments then date of agreement or date of acquisition is considered for arriving at cost inflation index.Thanks.

My wife got a house on instalment basis in 1990 The scheme is for 13 years upto 2003 . But she died in 2008 and Tamilnadu housing board finalised the final cost in 2011( for all the living and dead allotees .)
I paid the remaining demanded amounts and got the sale deed in 2011. If I sell now , what is the calculation mode for the types of payments involved in my case ?

I booked a flat under construction in 2010. Payments were made from 2010 to 2019. We got the possession in Dec. 2019.
Can I use index method for all the payments made over 9 years by using Index in the FY of payment and index of FY 2019-20 (year of possession) to arrive at our cost of purchase at time of Possession.
At the time of selling say in FY 2021-22 cost at time of possession can be indexed to FY2021-22. Subtract this amount from S. Price to arrive at LT Cap Gain

I booked a flat in 2010 and made some payments. Rest of the payments were made in various years under construction linked plan and finally the flat was allotted in 2017 and Registry done in 2019. I have sold in in 2022.
Do I have to calculate indexed cost of acquisition for every installment to arrive at total cost of acquisition

I booked a flat in 2010 and continued to pay the amount as demanded by the builder. Agreement registered in 2016. Got possession in 2018. How to calculate index cost for LTCG

Long-term capital gains indexation chart from 1993 to 2023

I purchased a flat in 2016 in instalment got the registry done after doing the full payment by 2019 in 2020. So, my first query is for indexation the purchase what will be the purchase year. The agreement of purchase with builder was done in 2016 itself.

Same property I sold in 2023, and again bought new property in 2023 which again is a under construction property and payment will go on instalment in 4 yrs.
The sale price of old property has been in full used in the purchase of new one with some extra amount too. So, the query is will there be any capital gain consideration required, as new property actual registry will be done only after 4 yrs

I purchased a flat in 2016 in instalment got the registry done after doing the full payment by 2019 in 2020. So, my first query is for indexation the purchase what will be the purchase year. The agreement of purchase with builder was done in 2016 itself.

Same property I sold in 2023, and again bought new property in 2023 which again is a under construction property and payment will go on instalment in 4 yrs.
The sale price of old property has been in full used in the purchase of new one with some extra amount too. So, the query is will there be any capital gain consideration required, as new property actual registry will be done only after 4 yrs

I puchased a flat on lottery in 2007 with four instalments payment and the registration done in 2012. I have sold my property in 2023-24. What is the date of acquisition an formula for the calculation of capital gains. Regardd,

As per sec 48 provisio ...Point (iii) it is when the property is HELD..so the right is created in agreement to sale or allotment letter itself so that is the date of acquisition and its advisable to take cost of inflation pro rata basis though even there it is the date when you HOLD the asset( mind that no where registration of deed is mandatory )..hope it satisfies ur query

Hi
Can you please guide on the below two queries :
1) property purchased in 2015(date of agreement between two parties entered in 2015), and registered in 2016 one year later which year should be considered for arriving at the indexation cost if the property is sold in Dec 2023?
2) 87% of the proceeds got from the deal in (1) have been reinvested to pay 25% amount in purchasing another property in Dec 2023,
So LTCG tax liabilities looks to be marginal for the property sold in (1).
3) I invested to acquire another under construction property in Nov 2023 on housing loan.
I intend to sale off the property acquired in (2) by Dec 2024 and use that proceeds to close the housing loan for the property acquired in (3), will this sale of property be inviting any tax liabilities if the complete proceeds received from the sale of the property would be utilised to close the housing loan taken in Nov 2023 ?
Please take a reference amount of sale of property in (1) to be 1 CR.

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