I Have alloated a flat from authority on 31/6/2005. they executed HPTA(hire purchase tenency agrement) on 31/6/2006 and transfer cum sale deed on 31/6/2009. i sold it on 1/8/2009 to third party.
please clarify:.
1. what would be my date of allotment (alloted by authority, HPTA date, transfer cum sale deed)
2. what is the meaning of HPTA
3. whether applicable tax would be short term capital gain or long term capital gain.
thanks
Hello Ajay,
1. Date of allotment of flat will be 31/06/2005.
2. HPTA: If you buy something using a hire purchase agreement, you agree to pay for all or part of what you’ve bought in instalments. However, you are actually hiring the property until you’ve paid your last instalment. You will then be asked if you wish to buy the property.
You won’t own the property until you have paid off all the instalments and paid the purchase fee. When you've done this, the property transfers to your ownership. This is called getting good title.
3. As the date of allotment is 31/06/2005, and you sell the property on 01/08/09, so you are entitled to pay LTCG.
Wait for more replies.
Thanking you
CCI
Pro
CAclubindia
