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Capital gain on house

Tax queries 137 views 3 replies

I have a House Property which as per agreement was supposed to be completed by the construction company by April 2014. But due to delay by the construction company, I received the possession of the property in May 2016. There wasn't any fault from my end. Due to need of Money, I will have to sell it off next year. My question is, will it be considered a long term capital gain or short term capital gain if I sell the property in May, 2017?

Majority of the payment for this property was done before April 2014, only the amount due for possession wasn't paid.

Replies (3)

Calculate advance payments as from date of agreement, and those after that  as from the date of payment till the date of sale agreement

Sir,

Thank you for the reply. 

It would really help if you could clarify whether the gain will be a long term gain or a short term gain? Because I've heard of cases that 3 years time for the purpose of long term is taken from the date of possession. 

At other places, I have been told that possession isn't the criteria.. If you were alloted the property then it is sufficient to take the 3 years period from the date of allotment. 

Also, what is the meaning of allotment? Coz I had been given the property number in the project very early..!! 

Actually, if you want to calculate gains over any property, its usually from date of possession.

But when its for any "capital asset" like rights aquired in property, it can be from date of allotment, or registered agreement (more authentic then just letter)

So, for each individual payments, time period is calculated for LT/ST, which in your case except last one all will be LT.


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