Long Term Capital Gains on sale of Flat

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Faculty
26 Points Posted on 14 September 2020

I booked a flat in the year 2012 for a consideration of Rs. 5200000. Periodic payment was made as per the progress of construction. Final installment was paid in December 2017. I took possession of the flat in March 2019 and disposed it in May 2019 for Rs 5800000. There was no registration of the flat in my name at any time. What is my Capital Gains liability in this case considering that payment was made in installments over a period of about 6 years before possession in March 2019 and holding for just about 1 month before disposal in May 2019?

Please advise.

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On 14 September 2020 at 17:15 Report
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Quick Summary
This discussion explores capital gains tax liability for a flat purchased in 2012, with final payment in December 2017, possession in March 2019, and sale in May 2019. The core question revolves around whether the gain is long-term or short-term, given the extended payment period but short holding period post-possession. The consensus suggests that since possession was taken in March 2019 and the flat was sold in May 2019, the asset is considered short-term, making any profit a short-term capital gain.

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Taxation Consultant
1823 Points Posted on 14 September 2020
There was no registration of the flat in my name at any time . then whose the owner of the house and how did you sell it, i mean at the time of sale , what was the name of the seller in the deed?
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On 14 September 2020 at 20:58
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Senior auditor
110 Points Posted on 15 September 2020
You got the ownership (significant amount of consideration paid and Handover letter received) in march 2019. Hence, the asset will be considered as 'short term capital asset' and any gain arising out of it will be considered as 'short term capital gain.
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On 15 September 2020 at 00:17

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