Kindly clarify the taxability—whether it will be treated as Long-Term Capital Gain (LTCG) or Short-Term Capital Gain (STCG)—in the case of sale of a flat which has been received from the government under compulsory acquisition immediately after possession.
The original property that was acquired by the government was a long-term capital asset.
Looking forward to your response.
If held for 24 months or less, the gain would be treated as Short-Term Capital Gain (STCG).
*Section 45*: Deals with capital gains on transfer of capital assets. -
*Section 48*: Specifies the mode of computation of capital gains.
It's essential to maintain records of the date of possession, sale, and calculation of capital gains
@ Dhruv
A short answer is that you sold the new flat before letting 24 months pass.
So any gain is to be treated as STCG on sale of residential property.
CAclubindia
