Long term capital asset or short term capital asset
This query is : Resolved
24 May 2012
For the purpose of determining whether a residential property is considered as long term capital asset or short term capital asset, which date is to be taken into account- Date of Allotment of residential flat or Date of possession, from the date of Sale of residential flat?
Early reply is highly appreciated.
Early reply is highly appreciated.
24 May 2012
In case of sale of Flat the relevant date to be considered is the Date of Possession.
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24 May 2012
I would be happy if the answer is supported by any section/rules or circular or case law.
24 May 2012
I would like to make you happy by suggesting you to refer section 2(47)(i) and Section 2(47)(v) respectively.
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If the flat is in co-operative society, you may please refer Section 2(47)(vi) also.
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If the flat is in co-operative society, you may please refer Section 2(47)(vi) also.
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24 May 2012
Section 2(47)(i) of Income Tax entails even a contract i.e., allotment letter to sale of immovable property (in this case a flat) entered between the builder and buyer constitutes as transfer. Moreover, buyer on the basis of 'Allotment letter' of the property obtains loan from the bank.
If that being the case, why not the allotment letter (basically it is agreement/contract between builder and buyer to deliver the flat at a particular date for a consideration) cannot be taken as transfer for determination of long/short term capital asset?
If that being the case, why not the allotment letter (basically it is agreement/contract between builder and buyer to deliver the flat at a particular date for a consideration) cannot be taken as transfer for determination of long/short term capital asset?
24 May 2012
Allotment Agreement shows that the purchaser has got the right to purchase. Right to purchase expires when the flat is finally allotted to him by possession or by executing registered document.
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I can not say that I have right to Purchase
Flat No 505, specifically when the property has already been registered in my name.
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The asset which has been purchased by me in whatever form, its nomenclature depends upon its current format at the time of sale.
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I can not say that I have right to Purchase
Flat No 505, specifically when the property has already been registered in my name.
.
The asset which has been purchased by me in whatever form, its nomenclature depends upon its current format at the time of sale.
.
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