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Capital gain

16 November 2012

Please give your opinion on the below mentioned case:

A Flat purchase on 1998 and agreement made on the same but the Stamp Duty paid & registerd flat on 2003. So in the above case cost of Aquistion taken on which year 1998 or 2003 ?

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8 Replies

saurabh goyal (self employed) (103 Points)
Replied 17 November 2012

Could you explain what you mean by purchased in 1998 ? Do you mean you received the money in advance? As I know Unless the stamp duty is paid & registration is done , we can't say property is sold officially . so I guess in this case year 2003 will be considered .

yashsr (CA) (2285 Points)
Replied 17 November 2012

Aggreement and the payment made on 1998 on registration and stamp duty process taken palce on 2003

Income Tax Wala: (Fin. Expert) (Chartered Accountants) (2010 Points)
Replied 17 November 2012

1998 COST INFLATION INDEX WILL APPLY

CA Ruben Balooni (Professionalism ™) (1324 Points)
Replied 24 November 2012

Ownership shall be reckoned from the date of posession. So Cost Inflation Index of 1998 shall apply.

Pankaj Gupta (CA final & M.Com Student) (3358 Points)
Replied 24 November 2012

Year 1998 shall be taken for the purpose of calculating indexation.

Saket Sinha (Student) (129 Points)
Replied 25 November 2012

As per the provisions of the income tax act, cost of acquisition shall be the price as mentioned in the agreement. If price as per agreement is less than the stamp duty value assesed or assessable by the stamp valuation authority then stamp duty shall be paid on such value assesed.