Letter of allotment 2008 Advances paid Project delayed Registration not done due to delay Project getting completed now in 2024 It's a pre maha rera property Owner not interested to keep property anymore due to partial completion Builder willing to buyback at higher rate Will capital gain and indexation benefit be applicable without registration Please advise. Similarly for partial project apartment which is yet not ready owner wants to register agreement now. Will they be Allowed to register at allotment booking value and claim indexation and capital gain benefit at time of sale later
Dear Sir, Your question involves an answered to be given by the Chartered Accountant.
Letter of allotment 2008 Advances paid Project delayed Registration not done due to delay Project getting completed now in 2024 It's a pre Maharera property Owner not interested to keep property anymore due to partial completion Builder willing to buy-back at higher rate Will capital gain and indexation benefit be applicable without registration Please advise. ANS: - As the registration between the builder & the purchaser is not done, this does not attract any kind of capital gain but in-case if you have made any type of registered document kindly review it from us. Similarly, for partial project apartment which is yet not ready owner wants to register agreement now. Will they be Allowed to register at allotment booking value and claim indexation and capital gain benefit at time of sale later ANS: - No, you will be Allowed to register & pay stamp duty charges as per today’s date which is 6% + 1% cess.
Dear Client, For capital gains purposes, the date of acquisition is considered the date of the allotment letter, not the date of registration. If the registration is happening now in 2024, the capital gains calculation should be based on the 2008 allotment date. If the builder is buying back the property at a higher rate, the sale will be considered for capital gains tax. Registration at the allotment booking value would depend on the current market value as assessed by the registration authorities. If the authorities find the market value to be higher than the original booking value, registration is required at the higher value. The date of acquisition for capital gains purposes shall be the date of the allotment letter. In that case, you can claim indexation benefits from the year of allotment, even if the registration is happening later. Hope this answer help you.
