LTCG

Tax queries 806 views 4 replies

Chetan Uberoi

Global Director

48 Points Joined April 2009

Hi,

I was allotted a residential plot by HUDA in 2002, The allotment letter clearly stated that " the possession is here by offered". I was not aware that I also had to take a posession certificate from HUDA. I plan to sell the plot in 2009 and plan to complete the formality of collecting the possession certificate. Would the sale qualify for LTCG as per; "

(v) any transaction involving the allowing of the possession of any immovable
property to be taken or retained in part performance of a contract of the nature
In referred to in section 53A of the Transfer of Property Act, 1882 (4 of 1882) "; of I T Act is given u/s 2(47A) which under clause (v) recognise part performance as transfer of capital asset.

Regards

Chetan

Replies (4)

krishan

principal

22 Points Joined April 2009

Long term or short term capital gain in your case depends upon the allotment. Once the allottment letter is issued by the HUDA, you become owner thereof irrespective on offer your took the possession or not. Allotment earmarked the ownership. Inyour case allotment letter was issued in the year 2002.There are 7 years from the date of allotment till today. In my opinion, you are entitled LTCG without any doubt and claim the same accordingly. There is no authority which could disallow the same.