Capital Gain

This query is : Resolved

CA Kanwaljeet (Querist)
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20 March 2010 dear expert,
a individual has paid booking amount of rs. 3 lacs, for a flat of rs. 50 lacs and receive a receipt of rs. 3 lacs, and balance money is payable in monthly EMI through bank and after that he will receive the possession certificate after 2 yrs. approx. so i want to know that
if he will sell the flat within 2 yrs. from the possession then he is liable for short term or long term
pls tell me clearly its urgent

CA. Deepak Narula

CA. Deepak Narula (Expert)
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20 March 2010 as per my view the period of holding will be considered from the date of transfer of ownership or date of possession whichever is earlier. the receipt of possession certificate is only a procedural aspect. if u sale the flat after 3 years from ownership/possession (w.e. is earlier) it will come under long term capital gain otherwise under short term capital gain.

more replies shud be awaited