Timing of purchase of house

Tax queries 814 views 6 replies

I have purchased a flat, consideration is paid in installments from 2005 to 2008. Flat was alloted to me on 2005 and I occupied it on 2008. I sold it on 2009. Is this a long term capital gain or a short term capital gain, is there any case law.

Replies (6)

Its long term in my view...

 

Because, the DATE OF POSSESSION IN 2005 will be considered as date of acquisition...

 

 

Let experts give their view too

Dear Sir,

it has to be treated as Long Term Asset since, you got the right to live in the house in the year 2005 itself. which is more than 3 years.

Obsolutely it is long term capital gain

Dear Mr. Ramachandran

The flat is a long term capital ssset and as such gains arising is a long term capital gain, i have come across a case law too regarding the same issue , i will let u know tomorrow

regards

karthi

Dear sir,

Year of transfer of the assets for Income tax will be considered from the year 2005 it self. Department is not concerned, what the transferor and transferee do after the transfer of assets whether the consideration is paid in installment or in full. Income tax will be charged on the transferor in the year of transfer only and not the year in which the full amount is received.

Keeping the above view in mind, in my opinion period of holding in your case will be from the year 2005 and accordingly it is a long term capital assets.

Dear sir,

Year of transfer of the assets for Income tax will be considered from the year 2005 it self. Department is not concerned, what the transferor and transferee do after the transfer of assets whether the consideration is paid in installment or in full. Income tax will be charged on the transferor in the year of transfer only and not the year in which the full amount is received. 

Keeping the above view in mind, in my opinion period of holding in your case will be from the year 2005 and accordingly it is a long term capital assets.

Lets wait for other views also.


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