Long Term Capital Gains Tax on Sale of Property

DATE OF TRANFERING D NAME IN OWNERSHIP RECORDS  i.e DATE OF REGISTRATION

date of registartion are taken for loang term capital gain tax beacuse in goverment record proprty are transfer on this date

It is date of allotment. 

plz refer to point 11 and 12 of two case studies

Ref: https://taxguru.in/income-tax/allowability-of-exemption-us-54f-if-builder-does-not-complete-construction-of-house-within-three-years.html pt no 11 & 12

Agree with roopali ... Date of registration is immaterial... Date of Allotment to be considered

date of registration                                     

Hi all

Neither it is the date of allotment nor it is the date of registration which should be considered as criteria for determining the date of transfer. This is well ununciated in the case law of CIT Vs.Gaziabad Engineering Co Pvt Ltd. (1981)

A document so long as it is not registered is not valid, yet once it is registered, it takes effect from the date of its execution. Section 47 of the Indian Registration Act, 1908 provides that a registered document shall operate from the date it would have commenced to operate if no registration thereof had been required or made and not from the date of its registration. Income Tax nowhere mentioned what should be the exact date of execution in case of transfer of immovable property. So reference has to be made from the other acts which governing the subject matter. Indian registration Act can be taken as reference to solve the issue.

Thus, it is the date of execution of sale agreement between parties concerned irrespective of the date of its registration in the registrar's office. and even if it will be registered, its registration would become effective from the date of entering into sale agreement by the parties. So it is the date of actual sale agreement made and entered into between parties should be considered as date of transfer of property and not the date of registration in registrar's office.

Thanks and regards,

Manoj B. Gavali 

I have a property that i am planning to sell. The date of agreement execution and registration is October 2010 while the date of possession is September 2012. If i sell now, will it be long term or short term capital gains? I consulted with a Practising CA and he told that it should be taken from date of possession but the comments in this forum say it is date of execution. Can any of the tax experts clarify?  This is very important to me and any help in this regard would be most welcome.

regards

Badri