CAPITAL GAINS - PERIOD OF HOLDING

This query is : Resolved

LAVINA CLETA D'SILVA (Querist)
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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?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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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.

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