Ltcg on sale of immovable property
This query is : Resolved
13 May 2013
My client has bought an underconstruction immovable property in April 2009. He has registered the property by paying requisite Stamp Duty in April 2009.
Payment for the flat was made subsequently in installments as per the progress of the constuction.
He got the possession of flat in Jan 2013 and wishes to sell it now ie in May 2013.
will this be considered as Long Term Capital Gain or Short term Cap gain for taxation purpose??
Can the Registration date in this case be considered as Date of Acquisition even though full payment of the property is not made nor has possession been taken on registration as the property was still under construction??
Pls Advice
Payment for the flat was made subsequently in installments as per the progress of the constuction.
He got the possession of flat in Jan 2013 and wishes to sell it now ie in May 2013.
will this be considered as Long Term Capital Gain or Short term Cap gain for taxation purpose??
Can the Registration date in this case be considered as Date of Acquisition even though full payment of the property is not made nor has possession been taken on registration as the property was still under construction??
Pls Advice
13 May 2013
according to me date of registration is the date of acquisition of flat.
14 May 2013
For the purpose of capital gain Date of Acquisition is
Date of Registeration of property
or
Date of possesstion of property.
Date of Registeration of property
or
Date of possesstion of property.
27 June 2013
I disagree with the experts as in the required question nothing has been mentioned when the property was sold against which the investment is being made.
In short once the property is purchased it is to be treated as investment and accordingly all the benefits are available and it is not from the date of either handing over or registration of flat in the name of the buyer. If the payments have been made to the builder it is to be treated as proper investment. There are many judgments on this issue
In short once the property is purchased it is to be treated as investment and accordingly all the benefits are available and it is not from the date of either handing over or registration of flat in the name of the buyer. If the payments have been made to the builder it is to be treated as proper investment. There are many judgments on this issue
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