I want to to know on the capital gains tax following:-
The assesse has got one house. The assessee had invested in five more house property in 2005. The assessee had taken the allottment letter from the Builder. The sale deed was not executed at the time of purchase. All the payments were made to builder from time to time. In the year 2010, assesse did the following:-
1) Entered into sale deed with the builder and then immediately sold one property.
2) Entered into Premises ownership agreement in tripartite agreement with builder, assessee and the third party to whom it is sold. In this case, the sale deed is not exeuted. The person to whom the same is sold had stamped and registered the agreement.
Now, the question posed are as follows:-
1) Whether in the first case, there will be short term capital gain or long term capital gain? In case of long term capital gain, can we get the benefit u/s54 for investment in other house.
2) In Second case, whether we can get the benefit of long term or short term? Whether it would be toward house property or other assets, kindly clarify? Can we get the benefit for benefit u/s 54 or not considering the above scenario.
Kindly clarify?
CAclubindia
