Period of Holding of Asset from Date of Agreement or Registration?

Share
Share This Thread
  1. Aditi Gulati

    Aditi Gulati Active Member

    Is the period of holding considered from the Date of entering into an agreement with the developer for purchase of under construction building or is it considered from the date of possession and registration of the Sale Agreement?
     
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    When you entered into an agreement with the developer and paid him the initial amount - you basically got a right over that property. Although the property has not been registered, but you still have a right over that property.

    The developer cannot sell it to some other person as you have a right over that property. And on completion of construction, this flat would be given to you as you have a right over this property.

    The right over the property which you got by entering into an agreement with the builder is also a capital asset.

    Therefore, the period of holding would be considered from the date of entering into an agreement with the developer.
     
  3. gaurav_kumar

    gaurav_kumar Well-Known Member

    Please also note that this right comes into existence when the flat is allotted to you.

    In other words, the flat number should be clearly mentioned at the time of entering into an agreement and all flat details should also be mentioned.

    If it is a general agreement stating that a flat would be awarded and exact details of the flat are not known - then it wont constitute a capital asset
     
    Vijay1970 likes this.
Draft saved Draft deleted
Loading...
Similar Threads Forum Date
clarification on holding period of LTCG computation Income Tax Oct 10, 2017
Period of Holding for Ancestral Property Income Tax Apr 19, 2015
Period of Holding for Property received through Gift Income Tax Mar 21, 2015
HRA not provided by employer for few days period before termination Income Tax Jan 11, 2018
EXEMPTION U/S 54 WHERE DEATH OF ASSESSEE WITHIN STIPULATED PERIOD. Income Tax Aug 29, 2017