Tax category on sale of under construction flat - long term or short term

Tax queries 150 views 5 replies

I entered into purchase agreement with a builder for a flat and sold it as follows

Date of Allotment letter from builder for purchase of under construction flat - 05/12/2013
Date of Agreement with builder for purchase of the under construction flat - 27/01/2014 (not registered)
Date of Possession letter from the builder - 14/07/2018
Date of agreement for CHANGE OF NOMINATION between builder, myself and new purchaser and accomplishment of  NOMINATION CHANGE- 17/09/2018

Kindly inform whether the type of gain is long term or short term.

Replies (5)

Its Long term holding of 'Rights acquired in a property'

Rambhia Sir By the term "Long term holding of 'Rights acquired in a property' ", what does it mean? May I get indexation benefit. May I get benefit of 54F.

Correct, you acquired right in the property on 5/12/2013, vide allotment letter, hence its LT cap asset, eligible for sec. 54F exemption.

Sir Regarding indexation benefit, should it be availed installment payment wise?

Yes.


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