LTCG on sale of property - Agreement date or Possession date of property?

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  1. Tushar Bramhanakr

    Tushar Bramhanakr New Member

    Hi All,

    Need some suggestions:

    I was reading through various articles on internet and each articles suggest differently with regards to which date to be considered for calculation of LTCG.

    I had booked a property in Pune in Dec 2008 (Letter of allotment), I registered the agreement in Aug 2010, received possession letter from builder in May 2012 (paid all instalments by this date) and took the possession in October 2012. The payments have been made to the builder as per the payment schedules and demands from builder from time to time as the construction progressed.

    I am planning to sell the property, but I not sure which date I am supposed to consider to fullfill the condition that the property should be held for a period of minimum 3 years in order to be eligible for LTCG.

    Please advise.
    Thanks all in advance.

    Best Regards,


    VAIBHAV DILIP RANE Active Member

    @Tushar Bramhanakr

    There are various views, some take Allotment Date, Initial Deposit Date, Sale Deed Reg Date etc.

    But keeping the Concern of several views, the IT Department mostly take "Date of Allotment" as Date of Acquisition.

    Date of Allotment itself gives the right on the Asset to the purchaser, & later on he pay his dues.

    As held in the case of Mrs. Madhu Kaul v/s. CIT in the P & H High Court.

    So Date of Allotment is Crucial Date.

    VAIBHAV DILIP RANE Active Member

    @Tushar Bramhanakr ,

    I din't get yours Last Para :- " I am planning to sell the property........."
    Last edited: Jun 17, 2014
  4. Tushar Bramhanakr

    Tushar Bramhanakr New Member

    @vaibhav Rane: I read several articles and it says that the property should be withheld for at least 3 years for getting eligible for LTCG and not for 1 year as you said in your response.
  5. Karan Batra

    Karan Batra Well-Known Member

    Dear @Tushar Bramhanakr

    There is lack of clarity in the Income Tax Act on whether the Date of Allotment or the Date of Possession should be taken as the Date of Purchase.

    In the absence of clarity, we have to rely on judgements and most of the judgements indicate that the Date of Allotment should be taken as the Date of Purchase for the purpose of computation of 3 years.
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