LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Long Term Capital Gains on sale of Flat

Krishnadutt (Faculty ) (26 Points)

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.

Reply
Follow
Share

2 Replies

CA NEHA RAMPURIA (Taxation Consultant) (1823 Points)
Replied 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?

abhay garg (Senior auditor) (110 Points)
Replied 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.