Residential House Property- Capital Gains
This query is : Resolved
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CA Shashikant Lonikar
(Querist)
13 June 2021
Hi,
The assessee has paid entire consideration on 31.12.2014
The sale deed is dated 31.3.2017
Physical possession is taken by the assessee on 31.3.2021
The question is: if the assessee wish to sale this property on 30.6.2021, whether he is liable for short term or long term capital gains.
The assessee has paid entire consideration on 31.12.2014
The sale deed is dated 31.3.2017
Physical possession is taken by the assessee on 31.3.2021
The question is: if the assessee wish to sale this property on 30.6.2021, whether he is liable for short term or long term capital gains.
CA Rajat Pathak
(Expert)
13 June 2021
Consider possession date.
CMA Poornima Madhava
(Expert)
13 June 2021
What can't sale deed date be considered? Is possession after registration relevant for this purpose? Could anyone explain me?
CA Rajat Pathak
(Expert)
13 June 2021
an agreement for sale of property is registered does not make it a conveyance, if such agreements is conditional and possession is not transferred to purchaser.
CA Shashikant Lonikar
(Querist)
13 June 2021
Legal ownership was transferred on Sale Deed date. Only physical possession was taken after 1 year.
CA R SEETHARAMAN
(Expert)
13 June 2021
Date of allotment or sale agreement date can be considered. Consider entire consideration paid date 31.12.2014
Read more at: https://www.caclubindia.com/experts/details.asp?mod_id=2844064
Ruling by the Income Tax Appellate Tribunal The Bombay High Court in the case of PCIT Vs. Vembu Vaidyanathan [ITA No. 1459 of 2016], held in January 2019 that the date of allotment would be treated as the date of acquisition. The ITAT reiterated the same principles. Example:- Chethan books a flat on 5th June 2016, pays the booking amount on the same date. An allotment letter is issued by the builder on the same date. An agreement to sell is entered into by Chethan and the builder on 7th July 2016. Chethan sells the under-construction property to Mr. Darwin on 25th August 2019. The holding period is calculated based on the date of the letter of allotment, which in this case is the 5th of June, 2016.
Read more at: https://www.caclubindia.com/experts/details.asp?mod_id=2844064
Ruling by the Income Tax Appellate Tribunal The Bombay High Court in the case of PCIT Vs. Vembu Vaidyanathan [ITA No. 1459 of 2016], held in January 2019 that the date of allotment would be treated as the date of acquisition. The ITAT reiterated the same principles. Example:- Chethan books a flat on 5th June 2016, pays the booking amount on the same date. An allotment letter is issued by the builder on the same date. An agreement to sell is entered into by Chethan and the builder on 7th July 2016. Chethan sells the under-construction property to Mr. Darwin on 25th August 2019. The holding period is calculated based on the date of the letter of allotment, which in this case is the 5th of June, 2016.
CA Shashikant Lonikar
(Querist)
13 June 2021
Thanks everyone for your advice and guidance. Thanks
CMA Poornima Madhava
(Expert)
13 June 2021
@Rajat
Here the info provided is the date of sale deed (not the date of agreement).
Here the info provided is the date of sale deed (not the date of agreement).
CA Shashikant Lonikar
(Querist)
14 June 2021
Thanks everyone for your inputs and valuable suggestions.
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