Sir,
if I buy an under construction flat from a seller on premium, (payment 1) and make balance payment to builder (payment 2), all by cheques and with agreements, but the builder gets my registry done at price originally agreed with seller ( ie, minus the premium I have paid Ito seller)
Will I get Capital Gain benefits of Payment 1 + payment 2 + Cost of registry and other expenses or only of the amount at which Registry is done.
Thanking everyone in advance and request for an early response please.
Full amounts paid for under-construction flat (premium, balance, registry, expenses) can qualify as Section 54 investment if contemporaneous documents exist If an owner buys an under-construction flat by paying a premium to the seller and balance to the builder, the amounts actually invested (premium, balance, registry and related expenses) can be treated as the investment qualifying for capital gains exemption under section 54, even if the title deed/registry records a lower declared sale consideration, provided there is contemporaneous documentary evidence (agreements, payment proofs, confirmations, receipts) substantiating the full amounts paid. Without such documentation the tax authorities may challenge the claimed investment. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
