Cancelling an Apartment Booking: Key Things You Need to Know

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Apartment Booking Cancellation Overview

Cancelling a flat booking depends on your builder-buyer agreement, which outlines refund timelines, penalties, and deductions.

Start with a Written Cancellation Request

Send a formal letter or email to the developer and get an acknowledgement. Keep booking agreement, ID proof, and payment receipts ready.

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Expected Deductions

Builders may deduct Rs 25,000 to Rs 2 lakh or up to 10 per cent of the property value. Registration fees are non-refundable. GST is refundable only in specific cases.

Tax Implications

Any amount received beyond the earnest money is taxed as capital gains. Income tax already paid during the transaction is not refunded.

Stamp Duty Refund Rules

Partial refunds may be possible if the agreement is not registered. Apply within six months under the Indian Stamp Act, 1899.

Keep All Records Safe

All refunds are processed via traceable payment modes, never in cash. Maintain copies of all communication and receipts.

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