Urgent ltcg query

Tax planning 594 views 3 replies

sharad rai

learner

178 Points Joined August 2010

DEAR MEMBERS

My q is related with long term capital gain.

one of my client purchased a property in dlf on installment basis on 05/04/2009, he recieved allotment letter on 15/04/2009.

details of installment are mentioned below

14/10/2009-800000

4/10/09-- 800000

13/8/09- 800000

14/7/2009- 80000

25/6/10 800000

28/3/11 800000

14/1/2012 80000

15/5/2012 800000

18/9/2012-- 800000

last installment on 1/12/2012- 800000

date of selling without possession- 1/62013 for rs-1.35 crore

I want to know whether i treated that as ltcg or stcg. If treatment is ltcg then what is the process of calculation of index value..?????

Please reply fast

Replies (3)

Z

Tax Consultation (US and India)

2970 Points Joined September 2011

Making referrence of DDA because what DLF does is akin to this

Board Circular No. 471

"Under the Self-financing Scheme of the Delhi Development Authority, the allotment letter is issued on payment of the first instalment of the cost of construction. The allotment is final unless it is cancelled or the allottee withdraws from the scheme. The allotment is cancelled only under exceptional circumstances. The allottee gets title to the property on the issuance of the allotment letter and the payment of instalments is only a follow-up action and taking the delivery of possession is only a formality. If there is a failure on the part of the D.D.A. to deliver the possession of the flat after completing the construction, the remedy for the allottee is to file a suit for recovery of possession. "

https://www.incometaxindiapr.gov.in/incometaxindiacr/contents/CBDTFiles/Circulars/CBDTLaws/HTMLFiles/sec54_672_93.htm

So date of purchase shall be 15/04/09

Indexation is allowed from the date of acquiring the asset and not on the payment basis, Therefore indexation shall be available from 15/04/09 irrespective of the fact that payments were mande at any later period. Therefore this property attracts LTCG