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.
How to document extra payments for under-construction flat to claim Section 54 capital gains exemption legally Buyer paid a premium to the seller plus builder payments for an under-construction flat, but the final registry records a lower value. For capital gains exemption under section 54, tax treatment depends on whether the extra payment can be substantiated as part of the cost of acquisition. Bank evidence, written agreements, receipts and consistent documentary trail can support including the premium in cost; an undisclosed or off-book premium risks being treated as unaccounted consideration, disallowed as cost and attracting scrutiny or penalties. Practical steps: preserve all agreements and bank proofs, disclose true consideration to tax authorities and consult a tax professional to determine reporting and documentation strategy. (AI Summary)
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