Icoa [Resolved] | Income Tax

This query is : Resolved

sreejith nair (Querist)

24 December 2013 Facts of the Case:- An Assessee is allotted a plot by HUDA in faridabad by draw of lot in 2006, in regard of which he pays certain sum in annual installment till 2013(amount :approx 5.25 lacs). To be Accurate
1st installment(2007) : 98000
2nd installment(2008) : 102000
3rd installment(2009) : 71000
4th installment(2010) : 67000
5th installment(2011) : 62000
6th installment(2012) : 58000
7th installment(2013) : 68000
Now in 2013 he decides to sell this plot for 23 lakh. Confirmations Required on following:-

i) Should i take COA as combined 5.25 lakhs with period of holding beginning from 2006 (i mean CII of 2006 for whole 5.25 lakhs which has been paid in installments later)
or
ii) Should i take each installment as per its year of payment and apply CII of that particular year

Thank you for your Replies in Advance.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)

24 December 2013 1. Date of acquisition shall be 2006 (provided the possession was handed over in 2006), otherwise it will be the date on which possession was handed over.
2. COA shall be Rs. 5.25 lakhs.
3. Indexation will be applied on the whole 5.25 lakhs for the year 2006-07 (if possession was handed over in 2006).

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sreejith nair

sreejith nair (Querist)

24 December 2013 even if 1 installment was paid in 2013.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)

25 December 2013 Date of PAYMENT of installment is NOT relevant.

Date of POSSESSION is relevant.

Transfer takes place on the date of handing over of POSSESSION.

So the assessee becomes the owner on the date on which he gets the possession.

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