Scenario: Seller is planning to dispose off a non agricultural plot of land by executing a power in the name of the buyer and registering the power.
In this case the actual sale of the property has not taken place and will take place at a later point in time (but cant say when). But the power has been registered and the seller has recieved the total intended sale consideration at the time of execution of the power. The seller no longer has any control over the property and cannot say when the buyer (to whom he has given the power for the said property) will execute the sale deed with any other party.
Can the seller pay Long term capital gains (long term because the seller has been holding this immovable property for more than 5 years) for this property considering that he has sold the property on the day he executed the power? Or should the seller actually wait till the buyer (person to whom the seller has given power) actually executes and registers a sale deed with some party? (This seems quite impossible to do as the seller doesn't have any control or visibility of the property after the execution of power)
Also elsewhere (http://www.caclubindia.com/forum/long-term-capital-gains-tax-on-sale-of-property-148277.asp) I read that LTCG should be calculated based on the date of execution of the sale agreement (even if it is not registered). Can anyone comment on this also?