Capital Gain

do we consider purchase deed or satakhat(agreement for purchase) for calculation of indexation
Replies (6)

Whatever actual amount paid........

i want to know the date from which i shall take tge bemefit of indexation

The date of each intallment of payment made after satakhat!!

We do not need to provide indexation in respect of each date of payment of installation.

Acquiring a property is a separate issue and how the payment is made for that acquisition is a different issue. [There are a few judgements also in this regards.]

 

Which date is to be used for the purpose of indexation depends on facts of each case. Sometimes we have to use the date of the agreement, sometimes the date of possession, sometimes date of registration and sometimes at other periods.

To avoid litigation, I would recommend picking up the LATER date.

but picking up the later date would increase huge amount of tax as there is difference of 2.5 years btwn two dates

That is what the AO would be tempted to do. However, facts have to be seen in respect of each case.

 

Was the property under any scheme like the scheme of DDA etc.?

From whom the property was acquired?

Date of entering into the agreement?

Date of the possession?

Date of Registration?

I would need to read the agreement, so I copy thereof.

The amount and date of advance, if any?

Your jurisdiction( High Court Jurisdiction)

 

 

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