• Can a flat be registered in favour of a purchaser before the promoter/owner gets a completion certificate from the municipal authority?

Can the municipal authority give a completion certificate for some flats before the construction of the whole building is complete?

K.C. Ganguly, Calcutta

Yes, a flat can be registered in favour of a buyer before the promoter/owner gets a completion certificate.

The municipal authority gives a fit certificate for the entire building and not a part.

• I have bought a flat in New Town, Rajarhat, for which I paid the first instalment in April 2004. I got possession of the flat in July this year. If I sell the flat now and invest in another, will I be exempt from capital gains tax? If not, how much tax do I have to pay? What are the rules of capital gains exemption? I am a senior citizen and pay tax regularly.

Smita Mukherji on email

You can avoid paying capital gains tax only if you re-invest the entire sum within three years of selling the earlier flat. You have to take possession of the new property as well.

In case you do not re-invest, a 10 per cent capital gains tax will be imposed if you do the indexation, a method of calculating cost inflation on the acquisition price of an asset during the tenure of its possession. If you don’t do the indexation, which helps property owners get around the effect of inflation, the tax rate will be 20 per cent.

A certified valuer does the indexation, through which capital gains are established.

• I bought a flat in July 2003. The promoter drew up a sale agreement and I paid the full amount. But despite several requests, the promoter is not registering the flat. What should I do?

Ajay Pasari, Kankurgachhi

You can file a court case seeking a directive to force the promoter to get the registration done. The court might also order the registration to be done without the promoter.

• I own a flat in Bansdroni, Calcutta. I want to lease it out. Please suggest a good real estate agency.

M. Subhramaniam, Chennai

By policy, we cannot suggest any names. You can log into www.credaibengal.com, the website of the builders’ association Credai Bengal.

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or mail them to
Sambit Saha, Business Telegraph, ABP Ltd,
6, Prafulla Sarkar Street, Calcutta — 700001