House Property Bought from Own Funds and than Sold

[Guest]

Could you please advise how to treat the amount received from sale proceeds of a flat for which the amount was paid from own pocket?

Second Question: In case I sell the flat on the same price on which I get the sale deed registered to buyer, how the amount received will be treated? This will be a case of short term capital gains. As I will sell the property on the same date on which I will get it registered in my name.

[DR.MARIAPPAN GOVINDARAJAN]

Whether the transaction is in the individual capacity or in the capacity of business?

AI Summary

Capital gains tax: sale of property bought from own funds may be short term or business income depending on seller capacity. Query concerns tax treatment of sale proceeds of a flat bought with personal funds and sold at the same price on the same date as registration, with the seller suggesting short term capital gains; adviser emphasised that whether the transaction is in an individual capacity or in the capacity of a business is the key determinant of tax classification between capital gains and business income.