Register the property as soon as you book
You can get indexation benefit on each instalment paid at the time of selling
Last Updated at August 27, 2016 22:09 IST
Flexible payment schemes offered for under-construction property can lead to tax issues when the owner sells it. It’s not clear in the Income-Tax Act whether the seller should take the indexation benefit from the date of getting possession of the house or if it can be calculated based on each instalment paid after registration.
The flexible payment started with 80:20 scheme, where a buyer pays 80 per cent of the home value upfront either from his own funds or through a loan. The remaining is paid on possession. At present, there are many complicated variants of it such as ...
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First Published: Sat, August 27 2016. 21:56 IST