Period of holding of residential flat and its acquisition cost

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:

  1. 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?
  2. What will be the cost of acquisition?

Thanks in advance.

Replies (3)
Quick Summary
This discussion explores the acquisition date and cost for a residential flat that was part of a building redevelopment. The client originally purchased the flat in 1999, and after a series of agreements and construction phases, received a new flat in 2024. The key questions revolve around determining the correct acquisition date and whether the flat qualifies as a short-term or long-term capital asset for tax purposes, impacting capital gains calculations.

As on today short term. but after April 2026 long term.

Circle rate of new flat as on 01.04.2024

Lets explain short term and long term capital gain

First you hv to know what is capital gain? When does it arise?

What is short term capital gain ????

What is long term capital gain?????

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