Sale of Flat Capital gain or not ??????????

This query is : Resolved

CA. BIJENDER KR. BANSAL (Querist)
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08 May 2010 Dear All,

One of my friend book a flat with omaxe. and paid Rs. 100000 as booking amount. Possession to be made after 2 year.
4 Inslalment of Rs.500000/- to be made half yearly.
Now he had paid 2 instalment of Rs.500000/-.
Today he need money, he want to sold this flat. Amount receivable from one vendor is Rs. 1500000 against Rs.1100000 which he paid . Whether it is capital gain or other income.
This income will be taxable under which head.

If answer is differ if such flat is sold after one month from the date of getting possession (All payment of instalment i.e 2100000/ has been made). Sale price of Rs. 3000000/- now Rs. 900000 is capital gain if yes then it is short term or long term.
Period.

Please provide valuable suggestion.
Thanks
Ca. B.K.BANSAL

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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10 May 2010 1)It is a 'transfer of right' in a property. Capital gains attracts. Short term since 36 moths are not over from the booking date.

2) Flat is sold with in one month from date of possession. Profit is short term capital gains.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Querist)
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10 May 2010 Dear Sir,

Please tell that 36 months will be taken from date of booking or date of allotment or date of possession.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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10 May 2010 1) From the date of booking.
2) From the date of possession.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Querist)
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10 May 2010 Dear Chackrapani ji,
How can it differ case wise case ?
In case of possession also, the person has paid booking amount, then why 36 months counted from date of possession.

Thanks for your valuable feedback.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Querist)
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taxindiaconnect

taxindiaconnect (Expert)
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25 May 2010 Dear BK it is becasue in the first case the transfer of of a right in the capital assets and in the second case the assets has come in the exitance on the date of possession. I fully second he views expressed by my friend BC.

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