Capital gain - sale of flat at new delhi

Tax queries 846 views 3 replies

Hi Experts

Flat Booked in Aug 2005 at Delhi

Notice of handover from builder received in Aug 2010

Flat sold in Sep 2010

Is the Capital gain considered short term or long term? Is Exemption available u/s. 54/54F? Please advise. Thanks in advance

 

Replies (3)

Hi Sandhya,

In this case, since the date of possession is Aug 2010, so the period of holding is less than 36 months.

So it should be a short term capital assets. and gain/loss would be treated as STCG/STCL.

Exemption U/s 54/54F is available only from LTCG.

So in this case, you cant claim exemption u/s 54/54F.

Totally agree with Mr. Sanat Kumar..!

As Per Section 2(47) Transfer includes Transaction of types covered in Part performance of contract.

In other words,in part of performanceof contract one party has got possession of the property, registration is irrelevent fro computation of Capital gains.

For Period of Holding is the date from which Possession of the property got or handed over.

if it is more than 36 months then Long term capital asset otherwise short term.in this case it is short term.

Further section 48 cost acquistion is price paid to receive tghe same.

Therefore if any gain or loss is short term.

Subject to section 54F or 54 to avail the benfit it sholud be long term.

Therefore in this case you will not avail benfit of section 54 or 54F.

 


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