Ltcg on sale of resientila flat

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

08 January 2014 A has purchased a under constructed house from builder on 1.1.2011.
Purchase agreement is executed and stamp duty / registration is done on 5.1.2011.
Possession of flat with letter is received on 1.10.2013.
He wants to sell the flat now ie after 10.1.2014.
Whether he will be taxed with STCG or LTCG section 54 benefit will be available

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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09 January 2014 In my view, LTCG benefit should be available since agreement to sell executed on 05.01.2011 and plans to sell after 10.01.2014 i.e. after the expiry of three years from the date of agreement to sell. Possession in this case should not be relevant for the purpose of determining whether the asset is long term or not.
You may wait for other opinions.

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