Capital gain will arise or not in these case.

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This query is : Resolved

Ganu (Querist)

23 February 2012 My client has purchased an office in the year 2008, But still the possession letter and Occupation Certificate is not taken by him and now he is selling the office so will he attract Capital Gain.

advise!!!

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

23 February 2012 Cost of Acquisition may be indexed with reference to the date of Possession Letter and arising capital gain will be Long term as the asset is held for more than 3 years.
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Ganu

Ganu (Querist)

23 February 2012 Respected CA Paras Bafna Sir,
But sir,

It is not my asset as the possession letter and Occupation certificate is not obtained

Krishna Mohan

Krishna Mohan (Expert)

23 February 2012 Mr.Ganu, the definition of capital asset includes sale, exchange or relinquishment of the asset or the extinguishment of any rights therein etc., In your client's case, even-though he has not taken possession or occupancy certificate, he will definitely have a right on the property which he will be relinquishing on sale of the same. Hence capital gains shall attract. Due indexation, as suggested by Bafna sir, can be considered wherever applicable.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

23 February 2012 Dear Ganu,

I am of the firm belief that while reading the query- " Possession letter has been received but Occupation letter has not been received. was read by me.
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May be it's my confusion or something else ???
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