Date of acquisition for capital gains

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 August 2013 Hi All,

I was alloted an housing board flat by the state government under the lot scheme in 1988. I occupied the house and started paying monthly installments from 1990. All the installments where paid by year 2000 and the state goverment housing board authorities issued the sale deed in 2006.

Now if I sell the property what would be my date of acquisition? Date on which sale deed was issued or date of allotments of flat? It would make a lot of difference in the indexation cost.

Thanks in advance

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

13 August 2013 Date of allotment or possession will be taken as period of holding. Indexation will be available. If you search- you may find a notification in this regard also.
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Against part performance of the contract the asset has been held by you and for IT purpose your ownership starts from that date.
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What ever is paid later is just like payment made to a creditor.
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Querist : Anonymous

Querist : Anonymous (Querist)

13 August 2013 Thank you Mr Bafna

Querist : Anonymous

Querist : Anonymous (Querist)

13 August 2013 Thank you Mr Bafna,

So as I understand the sale deed date does not have any implication on my resale and its the date of allotment which will be considered.

Thanks

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

13 August 2013 You are correct sir.

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)

13 August 2013 Please also keep in mind :

The instalments which have been paid during 1990 to 2000; have to be indexed according to the prescribed indexation of Income-Tax Act year wise.

Querist : Anonymous

Querist : Anonymous (Querist)

27 August 2013 Dear Bafna Sir,

I am not able to locate the notification for this, can you guide me where can I find a notification with regards to this?

Thanks

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