How profit earned on a flat booking taxed?



I had booked a flat in the year 2007. After that construction started. The construction is now complete. I wish to sell the same to a buyer even before the flat being registered in my name, i.e. the sale deed will be between me, the builder, and the buyer, which will be executed in Feb 2012. I will earn some amount from this sale. How the income tax will be levied on this transaction. Whether it will be a capital gain, and if so, short term or long term?

How profit earned on a flat booking taxed?
Rate these answers

Leave a Reply

Your email address will not be published. Required fields are marked *

  1. if you sell even before registration,you do not figure in the scene. so there is no question of any gains or tax on it.But it is illegal.