Computation of Capital Gain in series of EMI payment

[SHOEB VAPIWALA]

The Assessee has paid to book a flat as under: A Y: 2009-10-Rs.6,00,300/- (w.e.f. 11/02/2010) A Y : 2010-2011 - ₹ 9,44,920/- A Y : 2011-12 ₹ 13,77,466/-and A Y: 2012-13 ₹ 2,80,140/-(last: 13/08/2014) - Total ₹ 32,02,826/- paid up. On cancellation on 01.07.2014 the Builder paid ₹ 43,23,398/-. Will you advise how to compoute Capital Gain?Thanks

AI Summary

Calculating Capital Gains on Canceled Flat Booking: Right to Own Considered a Capital Asset, Indexation for Over 36 Months An individual inquired about calculating capital gains from a canceled flat booking, where payments were made over several years and a refund was received upon cancellation. The first respondent suggested that the right to own the flat, rather than the flat itself, was transferred, and advised segregating payments into long-term and short-term based on the duration before cancellation. The second respondent emphasized that the right is a capital asset, with indexation benefits applicable if held over 36 months, and suggested treating payments as costs of improvement, using the refund as the full value consideration without segregation.