Capital gain consideration

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This discussion clarifies the capital gains tax applicable when selling a villa. The key factor is determining whether the asset is considered long-term or short-term. Based on the provided information, the holding period for long-term capital gains requires 24 months from the date of acquiring rights in the asset. Since the villa was registered in July 2024 and the agreement was made in March 2022, the holding period likely qualifies for long-term capital gains tax.

kailash choudhary

kailash choudhary (Querist)
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17 November 2024 I booked a villa in March 2022 from a builder and secured a home loan in March 2022 based on the agreement. As per the agreement all installment of payments was made on time .The villa was registered in July 2024 after completion of construction . Now, I am selling the villa in November 2024. What will be the applicable capital gains tax—long-term or short-term?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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17 November 2024 Whether the agreement was registered in March 2022?

kailash choudhary

kailash choudhary (Querist)
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18 November 2024 Agreement done between both parties on 500 rs stamp paper only.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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18 November 2024 Even it be considered as allotment, the time period for 'rights acquired in an asset' should be 24 months (if sold after 23.07.2024) to be consider it as Long Term holding.. So it will be Long term capital gain.

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