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i think the sale agreement will mention the date of possession , or it will probably be deemed possession from the date of sale agreement (53A transfer of property )
An immovable property could be taken or retained by the prospective buyer by entering into a sale agreement with the seller. If the sale agreement satisfies the requirements of Section 53A of the Transfer of Property Act, 1882 the ownership could be obtained by mere possession without any sale deed or registration thereof.
On sale of such property later, the date of acquisition of ownership must be counted from the date of possessing the property in accordance with sale agreement and not from the date of sale deed or its registration.
In Madathil Brothers vs Deputy CIT (2008 301 ITR 345 Madras), the assessee had possession of property from 1976 based on sale agreement, though the sale deed in favour of the assessee was executed in July 1986 and was registered in September 1986.
The property was sold four days after the registration of the document in the assessee’s favour. The court held that for the purpose of reckoning the ownership tenure, the date of sale agreement and consequent possession thereof was to be considered and not the date of execution of sale deed or its registration. Accordingly it held that the transfer is taxable as LTCG.
In your case ,since 36 months have passed it will be LTCG .
If your current sale agreement value now will be more than 30 lakhs , it will be reported under CASS .
I think a reference to the valuation officer will also be made if in assessment
CAclubindia
