Help regarding ltcg or stcg on sale of property

278 views 12 replies

rahul

Student

67 Points Joined July 2009

My father got a residential plot alloted under HUDA scheme in 2004. He passed away in 2008 and the property till date hasn't been registered. Currently I'm in the process of getting the title transfered into my mothers name as shes the heir to the property and should be done by September 2018 by when I'll also get the property registered in her name. I am now looking at selling this property. My question is that for the purposes of Capital gains calculations does the holding period start from the date of allotment or from the date of registry of the property? Entire payment for the property still hasn't been made. Possession was offerered around 2011-2012 but was not taken because of non payment. If it starts from date of allotment, being 2004 in my case, then I'll come under LTCG if it starts from the date of registry then I'll come under STCG. Please help!

Replies (12)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

210138 Points Joined July 2016

From date of allotment....

rama krishnan

12244 Points Joined May 2017

if the plot is allotted on payment of full consideration and in turn if your father have received the possession of the plot, then the date of allotment can be taken for the purpose of holding period. if neither the payment has been made nor possession had been made then date of registry will be taken for holding period

rahul

Student

67 Points Joined July 2009

Entire payment for the property still hasn't been made. Possession was offerered around 2011-2012 but was not taken because of non payment. In such case are you certain that holding period doesn't begin from date of allotment? Thanks for your response

rahul

Student

67 Points Joined July 2009

Thanks for your reply. Is that the case even if entire payment hasn't been made and possesion hasn't been taken?

rama krishnan

12244 Points Joined May 2017

it's not necessary to pay entire consideration,, if you had paid any advance amount and rest of the payments were paid in installments will also be considered for the terminology paymet of consideration

rahul

Student

67 Points Joined July 2009

One payment was made along with application and another was made alongwith the allotment letter. The rest of the instalment payments were missed and the interest on them has been accruing. Recently made a major payment related to enhancement. In such a case if I sell the property in the near future will it be STCG or LTCG? Thanks

rama krishnan

12244 Points Joined May 2017

whether the possession of the plot was given to you along with the allotment letter

rahul

Student

67 Points Joined July 2009

Possession was not offered alongwith allotment letter. It was only offerered 4-5 years later.

rama krishnan

12244 Points Joined May 2017

then the date of acquisition has to be reckoned from the date of possession...

rahul

Student

67 Points Joined July 2009

Ok. Possession has been offered but still not been accepted since there is some outstanding payment. So based on the information provided according to you I will be charged STCG since possession hasn't been accepted so the holding period hasn't even started as yet?