Whether it will be a capital asset
This query is : Resolved
CA Gyati Gupta
(Querist)
26 February 2015
My client have purchased a flat from a builder under contract of payment in installment.
The first installment was made in 2006, and last installment in 2011, after that he received the possession in same year.
Later within 3 months of receiving possession he sold that flat and purchased another flat.
My query is whether the capital gain calculated on 1st flat will be short term or long term ?
Will it qualify to be a long term capital asset ? Will the purchase date of flat be counted from first installment or from the date of receiving possession ?
The first installment was made in 2006, and last installment in 2011, after that he received the possession in same year.
Later within 3 months of receiving possession he sold that flat and purchased another flat.
My query is whether the capital gain calculated on 1st flat will be short term or long term ?
Will it qualify to be a long term capital asset ? Will the purchase date of flat be counted from first installment or from the date of receiving possession ?
CA R SEETHARAMAN
(Expert)
26 February 2015
It will be counted from the flat booking date. It will be a long term capital gain.
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