Base year for indexation

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CA Utkala Meher (Querist)
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29 June 2015 I have paid the full consideration in the FY 1995-96 and occupied a building in the same year and was staying there since 1995-96 and there is a sale deed for transfer of same property in 1995-96. However due to some problem the Registration of transfer happened in the year 2004-05 to my name with a deed. Now I am selling the building and I don't know whether I should considered 95-96 as base year or 2004-05 as base year for Indexation.

Please clarify me that which year I should considered for indexation and logic for the same.

CA. Sunil Gokhale

CA. Sunil Gokhale (Expert)
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29 June 2015 Normally, a transferee becomes the owner of an immovable property when the property has been registered in his name. A person in possession of a house property in part performance as per Sec. 53A of the Transfer of Property Act, 1882 will be the deemed owner of the property even if the registration has not been completed. The essential conditions are that: (1) there should be a contract in writing which you have; (2) transferee should have performed or is willing to perform his part of the contract that you had by making payment and (3) should have possession of the property which you say you had since 1995-96. Such conditions entitle you to claim the property as your own even without registration. You can take 1995-96 as base year for indexation.