Income Tax on under develop property

[Asked by Guest]

Hi Friends,

How tax is applicable on under develop property, If we sell the same before getting possession ? I wanted to purchase the new property from the proceeds of the current one which i want to sell. So will i get exempted from tax than?

And what all documentation required to sell the same? Can i sell it before making agreement?

Regards

Nis

[DR.MARIAPPAN GOVINDARAJAN]

The fact of the case is still to be elaborated.

AI Summary

Income tax on sale of under development property may affect capital gains treatment and exemption when reinvesting proceeds into new property.
Sale of an under development property before possession raises whether the receipt is taxable as capital consideration and whether reinvestment in a new property qualifies for exemption; resolution depends on facts such as timing of payments, title status, sale agreement terms and timing of the reinvestment.