Date of Purchase - Agreement Date or Registration Date?

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  1. poddarnirmal

    poddarnirmal New Member

    I have purchased a house in May 2010 which then was under construction. Builder has given possession in Dec 2012. If I sell this house now, will it qualify for Short term Capital gain (2 yrs from possession) or for Long term capital gains (4 years from first payment and signing of agreement with the builder and registering / paying stamp duty)??

    Nirmal
     
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    If the agreement is registered, the date of acquisition would be considered as the date of agreement.
     
  3. poddarnirmal

    poddarnirmal New Member

    Thanks for the reply. Can you also please clarify on following two issues:

    1) To get tax benefit, I am considering investment into a second house to use the gains from the sales of the first house. Shortlisted building is under construction. Again here, can we consider the date of registration as the date of acquistion for tax benefit.

    2) I will like to use sales proceeds for equity investments and take a fresh bank loan for the second house. The investment in the second house will be more than the capital gains of the sales of the first. Can i still get Nil tax on the capital gains.
     
  4. gaurav_kumar

    gaurav_kumar Well-Known Member

    1. The date of registration of agreement would be considered as the date of acquisition.
    2. Yes, you can take a loan for 2nd home and invest the sale proceeds of 1st house in equity. Exemption would be allowed even if 2nd house is purchased on loan.
     
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