Cap Gain: Acquisition date of under construction property

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  1. Sudipta Ghosh

    Sudipta Ghosh New Member

    As per the definition given, Short Term Capital Gain (STCG): If the Asset is held for less than 36 Months.
    Now suppose I booked a Property in a Govt JV Project which is under construction. Below are the details of the whole payment process:
    Total Value of the Property: 10lac, 2lac self sponsored, 8lac Bank loan.
    1st Installment/ Booking amount given 50000 on 1st Jan 2008
    2nd installment of 2.5 lac given on 1st June 2008 out of the 1.5lac self sponsored, 1 lac Bank loan amount. At this point EMI also started for full loan amount.
    3rd installment of 5lac given on 1st Jan 2009 from bank loan
    4th Final installment of 2lac given on 1st July 2009 from bank loan
    Possession of the Flat given by the builder was on 5th October 2011, along with possession letter, but registration still not done as they planned to do bulk registration for all the owner.
    Finally registration done on 1st Feb 2012.

    Now if I want to sell the property and invest the amount in another property, what will be the earliest date that I can choose? In this case which date will be considered as my purchase date, is it the one when I got the allotment letter and paid the 1st installment, or from when my EMI started, or when I paid the full amount of the flat or the possession date or the registration date?
  2. Sudipta Ghosh

    Sudipta Ghosh New Member

    The whole intension is to avoid short term capital gain, and come under Long term capital gain. And get the tax exemption of Long term capital gain by reinvesting the profit to another property.
  3. Parul_Gupta

    Parul_Gupta Active Member

    If the Allotment Letter specifically mentioned the Flat No. allotted to you, that means that you have got a right over that flat.

    And therefore, in this case - the Date of Acquisition would be considered as the Date on which the Allotment Letter was given to you.
  4. Sudipta Ghosh

    Sudipta Ghosh New Member

    Thanks Akanksha thanks for your reply...If anyone have different opinion, pls confirm..
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