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 acquisition: possession date governs indexation and cost inclusion; instalments and interest treated as acquisition cost.
The date of transfer/possession under section 2(47) and section 53A governs acquisition timing; instalment financing does not change that date. The full principal outstanding on that date is the cost base for indexation, with indexed cost computed from the year of possession. Interest and instalment-related amounts may be treated as part of the cost of acquisition under section 55 according to some High Court decisions, though disputes can arise; statutory limited credits for instalment payments may also apply.