Timeline fior longterm Capital Gains Tax on House

You can sell ur flat any time after the completion of 36 months.... i.e. after Jan 2010 to tax ur gain as long term capital gain...

Thanks for your reply.

36 months is from the date of booking the flat (May 2006), OR date of registration (Jan 2007) OR from the date of procession (Aug 2008)?  The final installment amount I paid to builder is at the time of procession.

As per your reply I understand that you calculated 36 months from the registration date. Please clarify me once again.

Regards

Satish

 date of 36 months will be checked from the date of possession of house.

Date of Registration. Megha shah is right

Hi, Satish, This is Hitesh, For the Purpose of Calculating period for Long term capital asset or short term capital asset date of Possesion of house is material and date of registration is totally immaterial. 

So in your case for calculating the period of 36 months August 2008 will be considered

 My view is substantiated by the following case law

 Date of taking possessions relevant for computing time-limit - Date of taking over possession of property purchased, and not the date of registration of sale in favour of the assessee, is relevant for computing the prescribed time-limit - CIT v. Mrs. Shahzada Begum [1988] 173 ITR 397 (AP).

Thanks and regards

CA. Hitesh Kumar

 fully agree with Mr, Hitesh kumar

Hi, Thanks for your responses. And please clarify my below question.

In my case I have about 1.5 years time between the registration and possession. Whether I have right sell the property before the possession and after the registration?  If yes, & if I have sold my flat before taking the possession and after the registration, will the profit come as capital gains? If yes, then the time for 36 months is started from the registration.

 Is this logic correct?

Please give your responses,

Regards

Satish

Hi I have purchased a flat in 1999 for Rs 10 Lac. I am planning to sell the same at 39 Lac and purchase the new flat at 30-32 Lacs. I have following query. 1. How much will i have to pay on long term capital gain after reinvesting on purchase of new flat. ie 39-30 : 9 lac in hand 2. if i do not reinvest in property then how much will be my capital gain. Please give your responses, Regards Virendra

ANS OF Virendra's que

sale value                                                                3900000

less exp.                                                                   0

total                                                                        3900000

  cost of ind.                        1000000*582/389=1496144

  C.G                                       3900000-1496144=2403856                 

if u invest less then 2403856 then u pay long turm CG other wise u not pay LTCG