12 July 2017
Quick question.. seek advise from Income Tax experts knowing about Capital Gains from Sale of Residential Property..
Residential property 1:
Application/Allotment Date: April 2009 Registration Date: 16 November 2009 Possession Date: 25 December 2011
Total Cost: INR 50 lakhs
Likely Sale Consideration (Net): 1.7 crores (Sale Date: July or August 2017)
Residential property 2:
Application Date: 16 Nov 2013 Allotment Date: 17 Jan 2014 Registration Date: 2 May 2014 Possession Date: July/August 2017
Total Cost: INR 43 lakhs
Question: What would the long term capital gain here on property 1? When should the sale agreement of property 1 be made so that exemption u/s 54 can be taken on property 2?
13 July 2017
For purchase : 1 year before or 2 years after the date of transfer...... so to say, the date of transfer of property 1 should be within one year from july/august 2017..
Querist :
Anonymous
Querist :
Anonymous
(Querist)
13 July 2017
Thanks Amol Ji.
So does that mean date of possession would be considered as the date of purchase in both the cases?
Also note both were booked while construction was yet to start and there was a lock-in/restriction for transfer or sale until possession..
13 July 2017
there are many case laws on this issue which are contradictory in nature... If date of possession is considered to be the decisive date of transfer, then the above calculation holds good. In your case, since it is a purchase through BOOKING, the crucial question that might arise is whether to consider only that portion of payment which falls within 1 year before the sale of property 1.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
13 July 2017
Thanks.
Possible to share those case law details?
Thanks again.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
13 July 2017
Which year would be used for indexation for property 1?
If full amount is paid for property 2 till 30 June but possession letter has not yet received. If possession letter comes after date of sale agreement of property 2, can exemption be claimed under section 54 as construction is completed within 3 years of date of transfer?