28 August 2012
My client being an Individual booked from builder under construction flat in Aug 2006 . It will be ready for possession in Oct 2012 . I want to know the following .
1) If He sell before possession , will the gain be LTCG ?
2) If He sell immediately after possession ( means after registry in my name ) , will the gain still be LTCG or He has to wait another 3 year after possession to avail LTCG ?
28 August 2012
1. As the flat is not yer registered in his name and he will not become the owner until the title deeds are actually registered in his name and hence he is not liable to LTCG
2. If he sell the property after registration , then it will be STCG as holding period is less than 3 years. To avail LTCG benefit, naturally he has to wait for completion of 3 years.
CAclubindia
