LONG TERM CAPITAL GAIN ON PROPERTY

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  1. kranti vij

    kranti vij New Member

    I sold one property other than resedential in December 2010 , which purchased 20 years back. I purchased a under construction apartment in April 2010 . I set off my long term capital gain on property sold by the apartment I purchased. Now in september 2013 I got the possession of my aprtment which I purchased in April 2010 . I have not got it get registered yet. Now if I want to sell this apartment, will the gain arising out of it will be considered as short time ( as I got possession in sept.2013) or long term as I acquired that apartment in april 2010 .
     
  2. Neha Sharma

    Neha Sharma Active Member

    There is a lot of confusion regarding whether the period of holding would be counted from the Date of Purchase or the Date of Possession or the Date of Registration.

    Most CA's are advising their clients to consider the Date of Purchase i.e. April 2010 in your case. And if we take April 2010, it would be a long term capital gain.

    Would still advise you to have a word with your CA and take his viewpoint on the same.
     
  3. kranti vij

    kranti vij New Member

    There is confusion, that is why I have posted my problem here on this forum. I want to know the actual position of my apartment with proof from case laws , so that I can take a decision. Thanks
     
  4. Neha Sharma

    Neha Sharma Active Member

    We can only interpret the law and not create the Law... The power to create the law lies with the govt.

    I have shared what the problem is how most CA's are advising their clients to deal with this problem...

    That is all we can help you with....
     
  5. VAIBHAV DILIP RANE

    VAIBHAV DILIP RANE Active Member

    It will be LTCG, on sale of property, because,...

    You may have enter "Agreement to Sale / Purchase" with the builder in April 2010, while the apartment was under construction.
    You have also paid the booking amount, slab amount/s in installments, to the builder as soon as you have enter the aforesaid agreement, means since April 2010.

    Since April 2010, you have started conquering rights of ownership on the apartment . You have get possession of the apartment in Sept 2013, cause you have executed the said Agreement properly by paying all dues to the builder since April 2010.

    In most of the cases, we consider Date of Agreement for computation of tax liability.

    (*above is in my personal view)
     
  6. vgj

    vgj New Member

    As per my view the date of registration consider because the value of property counts on index of the year of registration declaring value. Thus value counts from purchase to sale base on valued documents.
     
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