Using LTCG for House bought in previous year

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 May 2011 Hello Experts,

Please help me in answering my questions. Thanks in advance.

For the purchase of a flat in an (under construction) apartment (timelines and the events):

Jan 2010:
a) Initial booking amount paid to builder
b) Agreement with builder done.
c) Registration (by paying stamp duty) with authorities done.

Feb 2010:
a) Approval of home loan and first disbursement to the builder from Bank.

Dec 2010:
a) Occupation certificate for the building recevied by builder from authorities.

Feb 2011:
a) Final disbursement from bank.
b) Final payment from buyer to the builder.
c) Possession to the buyer from the builder.

April 2011:
a) Capital gain by selling ESOPs of US listed company. The ESOPs were vested in July 2007.

Questions:
1) Can I claim the tax benefit on the stamp duty charges for the assessment year 2010-11? Or in 2011-12? (Pls note, the possession was obtained in the next financial year after registration.)
2) Is the Capital Gain (of selling ESOPs) be Long term or Short term?
3) Assuming it is LTCG, can LTCG tax be saved on it by considering that the net capital gain is used for the purchase of flat? (This flat is the only residential property in my name.)

Thanks Again.

U S Sharma

U S Sharma (Expert)
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20 May 2011 registration cost can be claimed on actual payment date basis,

LTCG so gained can not be availed to get adjusted in cost of flat,as whole the assessment year got changed in which all the transactions has been completed with flat.

by virtue of registration done, the flat is now under possession of buyer, so verbal commitment of non possession does not stand.

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