CAPITAL GAINS - PERIOD OF HOLDING
This query is : Resolved
LAVINA CLETA D'SILVA
(Querist)
30 September 2021
An individual purchased a commercial shop under construction in 2017-18 after paying a substantial amount and executed an agreement of sale. However possession was handed over to him only in 2020-21.
1.If he sells sells the property in the current year, what will be the period of holding i.e., will it be considered as a long-term or short-term capital gain?
2. If it is a long term capital gain, will year of indexation be considered as 2017-18 or 2020-21 for cost of acquisition?
3. Are there any case laws to support the same?
1.If he sells sells the property in the current year, what will be the period of holding i.e., will it be considered as a long-term or short-term capital gain?
2. If it is a long term capital gain, will year of indexation be considered as 2017-18 or 2020-21 for cost of acquisition?
3. Are there any case laws to support the same?
Dhirajlal Rambhia
(Expert)
30 September 2021
In this case, date of execution of Registered agreement, is considered as date of acquisition of right in an asset.
If the right is transferred after 3 years it will be long term, otherwise short term.
Indexation available for arriving at Long term capital gain.
If the right is transferred after 3 years it will be long term, otherwise short term.
Indexation available for arriving at Long term capital gain.
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