One of my clients purchased a residential flat during 1999. During 2021, there was an agreement with a builder to redevelop the building into a new one after demolishing the exisint building; the agreement was duly registered with sub-registrar of the state government. The old building was demolished in 2022. Another agreement for allotment of a new residential flat to my client was registered during 2023. Construction of a new building in place of the old one was completed during April 2024.
My client got possession of the new residential flat after payment of some additional amount to the builder. Now due to old age and ill health, the client wants to sell the flat so that from sale proceeds, she can look after her maintenance and stay in a smaller rented house. No new flat will be purchased now.
My queries are:
- What will be date of acquisition of the flat now proposed to be sold; whether it will be a short term capital asset or long term asset?
- What will be the cost of acquisition?
Thanks in advance.
CAclubindia
