Calculation of Capital Gain in case plot is alloted by Govt. and payment made in installments.

[Ankur Simghal]

The facts of the case are as Follows:

Assessee was alloted a plot on 15/06/1999

Initial money paid Rs.1400000

Installments Paid on different dates.

15/03/2000 : Rs. 750000

15/09/2000 : Rs 750000

15/03/2001 : Rs 750000

15/09/2001 : Rs750000

each installment includes the amount of interest amounting Rs 150000/-

Pls tell me the calculation of Capital GAin 

the assessee has sold the said plot for Rs.2.5 crore (Stamp Duty Value)

 

AI Summary

Date of Possession Key for Capital Gains Indexation on Govt-Allotted Plot; Include Interest in Cost Calculation A forum discussion revolves around calculating capital gains for a plot allotted by the government, paid in installments. The plot was sold for Rs. 2.5 crore. The initial payment was Rs. 14 lakh, followed by four installments of Rs. 7.5 lakh each, including Rs. 1.5 lakh interest per installment. The key issue is determining the date of acquisition for indexation purposes. It is suggested that the date of possession is crucial, with the entire cost, including interest, considered for indexation. This approach is supported by some High Court judgments, although it may lead to disputes.