Become a Govt. Certified GST Practitioner in just 60 hrs. Register Now!

Capital gain & ltcg tax

D. B. VAGHELA (Retired DGM(Finance)BSNL) (45 Points)

14 August 2016

I purchased a Gujarat Housing Board flat from my younger brother who applied for transfer of said flat through Assignment Deed in my name to GHB on 30.01.1988 --- GHB conveyed their in principle consent to transfer the rights of said flat to D B Vaghela (i.e. me ) vide their letter Dated. 07.11.1988 to my brother with a copy to me. --- Society transferred the share certificate in my name on 12.06.1989 --- Conveyance Deed made on 27.09.1995 --- Conveyance Deed registered on 14.05.1996 What will be the Date of Acquisition while calculating the Indexed cost of acquisition ?

Reply
Follow
Share

7 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (193922 Points)
Replied 14 August 2016

When did you take possession?

How the payments were made?

Upgrade to CAclubindia Pro. Subscribe Now!

D. B. VAGHELA (Retired DGM(Finance)BSNL) (45 Points)
Replied 14 August 2016

While taking possession , we used to live in Gandhinagar jointly with my mother , brother & sisters because my father expired on 24.09.1975 being myself eldest son and entire finance was handled by me on behalf of entire joint family. so question of payment or possession was not relevant for me or entire family angle even as of now. So question requires simple answer - the date of acquisition should be 7.11.1988 or 12.06.1989 i.e.

GHB conveyed their in principle consent to transfer the rights of said flat to D B Vaghela (i.e. me ) vide their letter Dated. 07.11.1988 to my brother with a copy to me. --- Society transferred the share certificate in my name on 12.06.1989

Read more at: /forum/details.asp?mod_id=368934&offset=0

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (193922 Points)
Replied 14 August 2016

Different Courts have different judgements, based on posseesion letter, allotment letter, conveyance deed. or even agreement for sale, and Power of attorney etc. etc.

All the experts will have different opinion besed on these judgement, so which one will you take?

Sure and safest one is conveyance registration date!!!

Abhimanyu (CA) (316 Points)
Replied 14 August 2016

Thanks for the query,
Dear Mr. Vaghela,
It appears that in your case no actual possession was taken but in fact it was only a transfer of title on flat which compulsorily took place when the society transferred the share certificate in your name, since that date(12.6.89) you became the holder of share/piece of land

2 Like

Abhimanyu (CA) (316 Points)
Replied 14 August 2016

in continuation,
though in normal circumstances transfer of possession and payment of money would decide the Date of acquisition and a date which is latter would be better but considering the rationale of thus case it would not be unsafe to declare above stated date as Date of acquisition.
Thanks and regard,
Abhimanyu

Please revert in case needed.

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

D. B. VAGHELA (Retired DGM(Finance)BSNL) (45 Points)
Replied 15 August 2016

Thanks a lot to one and all for their valued opinions and concluding ending.

S S Dahale ( Agri and business) (439 Points)
Replied 17 August 2016

The first earlier date / year , of making payments from 1 party to other ( bigger amount as per actuals or min.prescibed Govt.ready reckoner ), or date / year in which conveyance deed had been executed for the same will be date for calaculating TAX LIABILTY ,a s date of allaotmment by society has NO meaning in terms of TAX laws ( as being NOT judged as public document )