Confusion regarding Classification of LTCG or STCG?

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  1. Jitendra C

    Jitendra C New Member


    We entered into an agreement with the Developer on May 30th 2011 while take benefit of LTCG of other property sold in April 2011.

    This property was registered in March 2013 and now we plan to sell the property. We want to know whether the Profit from the sale of the property will be treated Long Term Capital Gain OR Short Term Capital Gain.

    Our Second query is if we sell and register the Sale Deed in the name of the Buyer in Jan/Feb 2015 whether we have to deposit the Tax Immediately Or we can deposit the applicable tax by 15th March.

    Look forward to your response.
  2. rudrabose

    rudrabose Active Member

    1. If the sale transaction is registered in 2013, then it is STCG. If the sale transaction is registered in 2015 - then it is LTCG
    2. You can deposit the applicable tax by 15th March
  3. Jitendra C

    Jitendra C New Member

    Hi Rudra

    Thanks for your revert, however, I think I haven't explained correctly hence sharing the details once again regarding STCG or LTCG:

    1. Agreement to sell with the builder signed on 30/5/2011
    2. Property Registered on 28/03/2013
    3. Property Sold and Sale deed registration is planned for tomorrow/day after.

    For this case the gain will be treated STCG or LTCG?

    Look forward to your kind revert.

    God Bless!

  4. rudrabose

    rudrabose Active Member

    30/05/2011 would be considered as the date of purchase and 28/01/2016 as date of sale.

    As it is more than 3 years, therefore it would be classified as a Long Term Capital Gain.
  5. Jitendra C

    Jitendra C New Member

    Thanks for the quick revert Rudra

    Just last query, I had read somewhere recently that

    1. The 3 Years Timeline is calculated from the Date of Registration and not the date of Agreement to Sell

    2. The second important point that was part of the last year budget that a person can take advantage of the Sec 54 of IT Act only for One property and not multiple properties. - My apologies that I didn't mention in the beginning that Post the sale of the property in 2011, the new properties were a Set of TWO Flats (with two registrations)

    In the light of the above info can you please guide.

    God Bless!

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