I booked my Flat in Year 2009 and paid nearly 40% of the flat value as per Builders demand. But then Due to change in rules BMC asked to stop the construction and finally after 10Years Flat was handed over to us in year Nov 2019. We got OC in year 2024 Jan from BMC. Now I am selling this flat and I will have to calculate CG from the sale of Flat - How to calculate CG. ? Should I consider 2029 as a Possession Year or is there any way I will get benefit of the delayed handing over flat by Builder. ?

Ans: Person is required to pay tax on gain earned on the transfer of capital asset (flat). Gain amount is calculated by deducting indexed cost of asset from sale consideration.

Cost to the previous owner (husband in your case) will be considered as cost of acquisition and period of holding will also start from 2003 (date on which husband acquired the flat). However, subject of indexation benefit is matter of litigation. There are judicial pronouncements which allow to claim indexation benefit from the date of acquisition to the previous owner.

You can calculate the capital gain with the help of income tax calculator available at https://incometaxindia.gov.in/Pages/tools/indexed-cost-of-acquisition-or-improvement.aspx

Ans: Possession/Registration date, shall be treated as purchase date. You need to retain it for at least 2 years to make it eligible for Long Tern Capital Asset. (In this case you would be completing 2 year period in August-2025).
Most welcome for any further clarifications. Thanks.

Ans: For house property, acquired before 1st April 2001, owner has option to consider market value as on 1st April 2001 as cost.

Resident taxpayers (individuals/HUFs) selling immovable property acquired before July 23, 2024, can choose between two options for Long-Term Capital Gains (LTCG) tax:
Option A: 20% tax rate with indexation benefit (adjusting purchase price for inflation).
Option B: 12.5% tax rate without indexation.

This allows taxpayers to choose the lower tax liability.