Determination of Capital Asset as long term or short term

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The Assessee has purchased a residential house in Oct 2005. The agreement between builder was done during that time and possession was received in June 2007. Now the property is being sold, what will be it - a short term capital asset or a long term capital asset? whether date of possession is taken or date of agreement for purpose of determining it to be short term or long term cap asset? under which tax clause is it governed? are there any recent case laws to confirm the decision?

Please revert back soon

Sameer Luthra

Replies (1)

Date of agreement is the relevant date and not the date of possesion for determining capital gain.


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