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Date of Acqusition.. for house property

CA CS Amit Borade (Chief Accountant) (2828 Points)

16 March 2010

Hi Guyes

Happy Gudhi Padhava....

Q. For calculating period of holding for a House property which date should be taken as Date of acquisition?

1) Date of Registration

2) Date of Full payment

3) Date of Possession

Thanks

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17 Replies

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 16 March 2010

Hey amit, happy new year to u too...

And for ur query, i think REGISTERATION DATE is applicable

Rajat Singhal CA,CS,CFA (Senior Manager (F&A)) (254 Points)
Replied 16 March 2010

Hello freinds and happy new year to you all.... Yes Dheeraj u r right Registration date is the date of acquisition in the case of house property.

Amir (Learner) (4016 Points)
Replied 16 March 2010

Dear Amit,

Happy New Year.................!

U have asked a million dollor question....:)

I want to add one more wing "Date of Agreement" between the parties.

The context/facts will decide which date is to be taken but generally the fight is between "Date of Agreement" & the "Date of Possession"

2 Like

CA Babit Khurana (learning is my passion) (338 Points)
Replied 16 March 2010

No it is date of possession will be considered.

Rajat Singhal CA,CS,CFA (Senior Manager (F&A)) (254 Points)
Replied 16 March 2010

PLease correct me if i am wrong.

Capital gain on capital asset are applicable on transfer of asset so transfer date will decide what is acquisition date and what is date of sale.so first let us talk about what is the meaning of transfer.
transfer, in relation to a capital asset, includes,
the sale, exchange or relinquishment of the asset ; or
the extinguishment of any rights therein ; or
the compulsory acquisition thereof under any law ; or
in a case where the asset is converted by the owner thereof into, or is treated by him as, stock-in-trade of a business carried on by him, such conversion or treatment or
the maturity or redemption of a zero coupon bond; or
any transaction involving the allowing of the possession of any immovable property to be taken or retained in part performance of a contract of the nature referred to in section 53A 25 of the Transfer of Property Act, 1882 (4 of 1882) ; or
any transaction (whether by way of becoming a member of, or acquiring shares in, a co-operative society, company or other association of persons or by way of any agreement or any arrangement or in any other manner whatsoever) which has the effect of transferring, or enabling the enjoyment of, any immovable property.

As per Transfer of property act 1982 section 54 ,sale of immovable property shall be registered if property value is more than 100 other wise sale will not be effective.section 54 reproduced as under

54. "Sale" defined
"Sale" is a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised.
Sale how made: Such transfer, in the case of tangible immovable property of the value of one hundred rupees and upwards, or in the case of a reversion or other intangible thing, can be made only by a registered instrument.
In the case of tangible immovable property of a value less than one hundred rupees, such transfer may be made either by a registered instrument or by delivery of the property.
Delivery of tangible immovable property takes place when the seller places the buyer, or such person as he directs, in possession of the property.
Contract for sale: A contract for the sale of immovable property is a contract that a sale of such property shall take place on terms settled between the parties.It does not, of itself, create any interest in or charge on such property.

so from above the transfer date of immovable property depend upon two things

date of registration
date of possession of immovable property

in general practice date of registration and date of possession is same but in some cases it may be different so if amount is paid and possession is given even registration is pending then transfer date will be date of possession by the purchaser under section 53A of transfer of Property Act as explained in definition of "transfer" under Income Tax Act

on the basis of above details in my opinion the answer of your point is that if you have taken the possession of the flat/property and registration is even pending, then this transfer will be covered under section 53A of Transfer of property act and possession date will be the date of acquisition /Date of transfer even though registration date is later.

2 Like

vipan (studing) (82 Points)
Replied 16 March 2010

sir..

if date of possession and date of considration are different then which date will be considered for transfer under transfer of property act 1982 of sec 53A

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 16 March 2010

Hi vipan, then in such case i think it will be DATE OF POSSESSION only....

Prasanth Nair V (ACA,ACS,CWA Final,Mcom) (557 Points)
Replied 16 March 2010

Yes, I Agree with it. The Date will be the date of Registration as the Ownership transfers to you u that Date, irrespective of the date of possession...

Rajat Singhal CA,CS,CFA (Senior Manager (F&A)) (254 Points)
Replied 16 March 2010

Hello Vipan, in that case as dheeraj had said the date of possesion should be considered.

1 Like

CA Gagan Anand (Chartered Accountant) (47 Points)
Replied 16 March 2010

I suppose the date of transfer/acquisition of an immovable property should be taken as on the date of its actual possesion to the buying party or the date of its registration ,whichever is earlier.

C A GROUP COACHING (COACHING ) (2487 Points)
Replied 16 March 2010

For calculation of Capital Gains, Date of Purchase i.e Dt of registration carries weightage as it is on that date that the ownership rights are tranefered to you, However for calculation of Interest & amortisation of Interest u/s 24 Date of possession is Important & considered.

CA Saurabh Shukla (Accounts Executive) (223 Points)
Replied 16 March 2010

I 100% agree with Rajat Singhal.

Santhosh Poojary (SIEMPRE AHÍ PARA TI) (15607 Points)
Replied 17 March 2010

date of possession

Jagmohan Rawat (Taxation Auditing Financial service provider) (34 Points)
Replied 17 March 2010

Hi friends,

The date of tranfer would be determined on the basis of facts and circumstances of the case. If payment is made and possession is handed over then registeration becomes only a pending matter to be completed by the parties at their will. This view is supported by Trasfer of property Act. On the other side if payment is made and registeration is made in that case the deal is through whic is legally binding and possession of property is a matter of mutual understanding and need of the parties. Hence I think date of possession or date of registeration which ever is earlier should be the date of transfer.