In February 2009 i started staying in residential bungalow(first residential place) by paying token advance for purchase the bungalow, I paid all the installments by February 2012 and property in asset transferred to me by sale deed. sale deed registered by 16,50,000/- Now i want to sell this bungalow and want to purchase another bungalow for 56,00,000/- My Question is that can i get deduction under section 54 ( by investing Long term capital gain by selling first residential house and acquiring second residential house ) the required condition is that asset must be long term but in my case i started staying in february 2008 and sale deed is of feb 2012 if i consider sale deed as date of acquisition(feb 2012) than i am not eligible for deduction, so can the date of possession be considered as the date of acquisition(feb 2008) ? Please respond ASAP as the matter is urgent.
29 April 2014
When you started staying in that bunglow and paid advance whether letter of allotment was given by the person whom u bought it and major amount if paid before 3 years then you can get the benefit of long term asset.
Here the property was allotted to the assessee on 30.03.2006 as per the allotment letter received from the builder and the same was registered on 28/02/2008. To claim the benefit of long term asset, the date of allotment of the asset is important than the date of the property getting registered. As the assessee was in possession of the asset since he had made the payment towards the said property and it was allotted to him. Getting it registered is just a formality and it should not be considered for claiming capital gain. The said has been stated in case of Praveen Gupta vs ACIT [137 TTJ 307] Delhi ITAT held that the date of allotment is the date from which the period of holding is to be counted.
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