Hello,
I require clarification on the below matter:
A relative booked a flat in an apartment during May 2011, with a builder. Regular payments were made to the builder on construction linked basis as the apartment was under construction. After the construction was about 95% complete, the flat was sold to somebody by transfer through the builder in April 2016. By this transaction, there was profit to the seller as the sale amount was more than the amount paid to the builder.
Request you to clarify whether the profit in this sale can be treated as long term capital gain, as the under-construction flat was sold after 5 years from the date of booking/allotment.
Please note that the flat was never registered but only booked/allotted by the builder, as it was under construction, and then sold by transfer after 5 years.
Thanks in anticipation!
CAclubindia
