Capital gain on sale of land

This query is : Resolved

Prerak Jobanputra (Querist)
Follow

19 June 2014 I have purchased a plot of land from the development authority of some city. The payment was made in installment as per authority's scheme from 1992 (the year in which the allotment is done). But the deed was executed in Dec 2010. The same was sold in May 2014. My query is : what should be the date of purchase, 1992(i.e. the date of allotment) or 2010(i.e the date of execution of deed) for the purpose of calculating LTCG.

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

19 June 2014 Dear Prerak,

the date of acquisition is the date on which you got the possession of the property ie 1992. (assuming you had the access to this particular piece of land in 1992)

further given that more than 3 years from execution of the deed, it is immaterial what date you choose, the transaction will be considered as long term capital gains only. plus, the indexation shall be available from the date of each payment.