Long term capital gain

If a property is acquired under "Power of attorney" and "Agreement to sell", can it be sold after few years again under "Power of attorney" and "Agreement to sell"? If yes, what are the tax implications? Is it going to be treated under as normal Long term Capital Gain/Loss or under some other Tax provisions? My client is in doubt because he thinks that property acquired under "Agreement to sell" is not treated as a real transfer

Thanks

Replies (7)
Dear sir in my opinion it will be treated as capital gain. And the period of acquisition will decide the classification of STCG OR LTCG. Regards

Thanks a lot Sir, The property was acquired in the year 2004 so it must be Long term capital gain

Yes if period is more than 3 years. I suggest you to a proper documentation in this case. Regards

Agreement to sell is like a MoU signed and executed on a non-judicial stamp paper, which precedes the actual conveyance of the property via a sale deed. Unlike MoU, agreement to sell is legally binding on both the buyer and the seller in respect to the terms and conditions agreed upon between the two. On the date of actual conveyance as mentioned in the agreement to sell, the parties execute the sale deed. The question is whether any stamp duty was paid on this agreement to sell.

I appreciate your clarifications. The agreement to sell was done through Notary and there was no stamp duty paid

If this property is a residential flat, I don't know how the society transferred the flat on the basis of a agreement to sell. It is not a valid transfer document. 

 

This is only a leased plot of land and the plot of land was bought under power of attorney and agreement to sell

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