long term capital gain

Save Share

This query is : Resolved

RASHMI SANGEKAR (Querist)

06 October 2007 sir I have purchase a resdential flat with full and final payment by one chq .on 31/jan 2004. possesion letter and receipt of full and final payment is on 31/jan/2004.. my stampduty paid date is 27/feb/2004 and agreeement date is 27/july/2004.I have only one house.I sold it on 4/april /2007. to qualify for long term capital gain 36 months holding is require. in my case which date will be consider 31/jan/2004 or 27/july/2004.and I would like to know under which section or act of income tax my long term capital gain qualifys.

CA Mani

CA Mani (Expert)

06 October 2007 Your date of acquisition is 27th July and you have to pay tax U/s.54.

It's a short term capital gain.

Refer Sec.54 series whether any exemption is available to you.

Mallidi Ramabrahmananda Reddy

Mallidi Ramabrahmananda Reddy (Expert)

07 October 2007 Please refer to the definition "Transfer" for the purpose of charging capital gains. Taking possession is considered as transfer. In your case the possession was taken on 31.1.2004 and the full consideration was also paid on the same date. 31.1.2004 can be considered as date of transfer for computing the capital gains in the hands of the person who sold to you. Then the same date becomes the first day of holding of the propoerty by you. Now arrive your holding period from 31.1.2004.

RASHMI SANGEKAR

RASHMI SANGEKAR (Querist)

07 October 2007 sir now I am confused two experts have given diferent answer which should I consider. pls tell

Mallidi Ramabrahmananda Reddy

Mallidi Ramabrahmananda Reddy (Expert)

07 October 2007 Please refer to Section 2(47)(v) and (vi)of the Income tax Act 1961 wherein it is clearly stated that transfer in respect of capital assset.....includes giving possession.......enabling the enjoyment of the property......

sivasankar

sivasankar (Expert)

07 October 2007 Hi,
There are lot of decieded cases that registration is not the criterian for deciding the type of capital gain.
Hence I accept the answer given by Mr.Reddy.
Do not worry yours is a Long term capital gain.

Sandeep Diwan

Sandeep Diwan (Expert)

08 October 2007 HI,

payment of stamp duty is not the crerian for computaion of holding period. the important thing is date of possesion which is 31.01.04 based on this this is a case of long term capital gain

RASHMI SANGEKAR

RASHMI SANGEKAR (Querist)

08 October 2007 I am thankful to sir reddy, sir alsivasankar and sir sandeep diwan. I was misguided by many ca who told me my case comes under short term gain as agreement date will be considered.I was in lot of tension and pressure .U all help and guided me I am very grateful to u all.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now