Question on Short Term Capital Gains

urstop · Post by **urstop** » Fri Dec 05, 2014 10:54 pm

Hi,

I have purchased a flat about 1.5 yrs back and have now sold it. Since I did not hold the flat for 3 years, I am liable for short term capital gains. So, my question is about the calculation of my gains. In this gains do I need to consider forex cost difference between then and now as well when arriving at the profit figure. Because considering that £ was around 80 when I sent money for purchase and not its around £96, so if I take this into picture, I am actually making a loss on this transaction.

Thanks!

dbs · Post by **dbs** » Sun Dec 07, 2014 1:29 pm

Sorry, you lost out both ways.

As far as ITO is concerned, for CGains tax, source of money is immaterial.
You are liable for short term capital gains on the IR calculations only.

kkassociate · Post by **kkassociate** » Tue Dec 09, 2014 8:45 pm

That is right dbs, the amount of capital gains is calculated in INR and the tax needs to be paid on it.

Regards,
KKA
US and India Tax Filers and Advisors
www.kkassociate.com

cmdrsk · Post by **cmdrsk** » Mon Dec 22, 2014 10:53 pm

kkassociate;587516That is right dbs, the amount of capital gains is calculated in INR and the tax needs to be paid on it.

Regards,
KKA
US and India Tax Filers and Advisors
www.kkassociate.com

Dear KKA Associates,

Have a question reg property sale ad tax implication reg ST / LT

Booked June 2010, paid 10% cost
Agreement signed Jan 2012
property completed and registered Aug 2014

Post Agreement in Jan 2012 stage wise payment was made and final payment and reg completed Aug 2014.

I am NRI tax status for all these years. Since payment was made in stages when will qualify for LT loss/gain ?.

How is the stage wise payment used to calculate cost using indexation.
Looking to sell as using indexation it will be loss to me for LT. ST dont want to end up paying taxes so planning to wait until it qualifies for LT.

Appreciate your input.

Thanks

cmdrsk · Post by **cmdrsk** » Tue Dec 23, 2014 8:46 pm

waktem;588769Its a good investment in short term to make a better understanding and gain from short term.

Waktem - ST no indexation allowed on cost, is not a great investment and does not seem it will appreciate. So looking to see when it qualifies as LT and sell.

cmdrsk · Post by **cmdrsk** » Thu Dec 25, 2014 9:22 pm

cmdrsk;588781Waktem - ST no indexation allowed on cost, is not a great investment and does not seem it will appreciate. So looking to see when it qualifies as LT and sell.

Did google search and found the article.

http://www.moneycontrol.com/master_your_money/stocks_news_consumption.php?autono=981630

For LT gains the date of allotment is considered and not date of actual registration.

Still my open question remains as how to treat the installment payment and how to apply Indexation to the payments.

Anyone with credible link information ?.