20 March 2010
dear expert, a individual has paid booking amount of rs. 3 lacs, for a flat of rs. 50 lacs and receive a receipt of rs. 3 lacs, and balance money is payable in monthly EMI through bank and after that he will receive the possession certificate after 2 yrs. approx. so i want to know that if he will sell the flat within 2 yrs. from the possession then he is liable for short term or long term pls tell me clearly its urgent
20 March 2010
as per my view the period of holding will be considered from the date of transfer of ownership or date of possession whichever is earlier. the receipt of possession certificate is only a procedural aspect. if u sale the flat after 3 years from ownership/possession (w.e. is earlier) it will come under long term capital gain otherwise under short term capital gain.
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