Taxable or non-taxable long term capital gain

This query is : Resolved

SANKET SHAH (Querist)
Follow

25 November 2011 Flat - A - Date of sale 13/12/2009.
Flat - A- Date of Purchase 13/11/2006.
Flat - B- Date of Booking Flat 27/7/2004.
Flat - B- Date of Possession Nov 2009.
Flat - B- Date of Agreement 07/10/2009.
Kindly help to Exemption is available or nor.
date should be taken agreement date or possession date or Advance booking date.

CA pooja gupta

CA pooja gupta (Expert)
Follow

28 November 2011 ONLY DATE OF AQUISITION IS TAKEN IN CASE OF CALCULATION OF CAPITAL GAIN.

SANKET SHAH

SANKET SHAH (Querist)
Follow

28 November 2011 mem thanks for reply but ,, is this taxable or not??? and exemption is available u/s 54..kinly specify from above which date i have to concider.....

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
Follow

26 July 2025 Got it! Here’s a breakdown of your question regarding **Long Term Capital Gains (LTCG) taxability and exemption** for Flats A & B:

---

### Key facts:

| Flat | Event | Date |
| ------ | ---------- | ----------- |
| Flat A | Sale | 13 Dec 2009 |
| Flat A | Purchase | 13 Nov 2006 |
| Flat B | Booking | 27 Jul 2004 |
| Flat B | Possession | Nov 2009 |
| Flat B | Agreement | 07 Oct 2009 |

---

### Important points on LTCG:

* **Date of acquisition:** For capital gains, **the date of purchase/possession** is crucial, not booking or agreement date.
* For **under-construction properties**, possession date is generally considered the date of acquisition.
* **LTCG arises if the holding period exceeds 36 months** (3 years) for immovable property.

---

### Applying to your case:

* **Flat A:** Purchased on 13 Nov 2006 and sold on 13 Dec 2009

* Holding period = 3 years + 1 month → qualifies as **Long Term Capital Asset**
* LTCG is taxable on sale of Flat A.

* **Flat B:** Booking on 27 Jul 2004, agreement on 07 Oct 2009, possession Nov 2009

* Since it’s a flat under construction, **possession date (Nov 2009)** is acquisition date.
* Holding period from Nov 2009 to sale date (assumed Dec 2009) is less than 3 months → **Short Term Capital Asset** (or not qualifying for LTCG)
* No LTCG exemption applicable as holding period is less than 3 years.

---

### Exemption under Section 54:

* Exemption u/s 54 is available on **LTCG from sale of residential property if capital gains are reinvested in another residential house property within prescribed time**.
* Applies only to **LTCG** assets.
* So, for **Flat A**, exemption under Sec 54 can be claimed if reinvestment conditions are met.
* For **Flat B**, no exemption under Sec 54 as the gain (if any) is short-term.

---

### Summary:

| Flat | LTCG Status | Exemption u/s 54 available? |
| ------ | -------------------------------------------------------------- | -------------------------------- |
| Flat A | Long-term capital gain (3+ years) | Yes, if reinvested as per Sec 54 |
| Flat B | Short-term capital gain (possession Nov 2009 to sale Dec 2009) | No |

---

If you want, I can help you calculate exact LTCG or help with documentation for claiming exemption. Would that help?

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