HOLDING PERIOD OF BOOKED FLAT

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Anil Kumar (Querist)

04 May 2010 A had paid a certain amount to builder on 1.1.2006 as full and final payment for booking of a flat.The builder gave allotment letter as flat booking document on the same date that A will get his flat on 1.6.2008.
On 1.6.2008 , the possession of the flat was given to A.
If A sells that flat on 1.7.2010 , then how will this flat be considered,long term or short term?

CA Shiv

CA Shiv (Expert)

04 May 2010 well still its a big question which date to consider.. whether the date of making payment or date of possession.
As of now you can take the date of final payment of 2006 as purchase date and take it as a long term capital gain...

srinivasan pooranalingam

srinivasan pooranalingam (Expert)

04 May 2010 As on 01.01.2006, the flat was not in existence. It was handed over only on 01.06.2008 by the allotment letter. The superstructure shall be a short term capital asset until 31-05-2011. However, Undivided Share of Land may be a long term capitgal asset if it was registered before 01-07-2007 i.e., 36 months before the date of transfer

Anil Kumar

Anil Kumar (Querist)

05 May 2010 srinivasan ji,actually allotment letter handed over on 01.01.2006 and it stated that A will get his flat on 01.06.2008 .so letter was not given on 01.06.08 but on 01.01.06.
so please tell me because in allotment letter the builder only said that A will get his flat.