Capital gain on property sale - long term or short term ??
This query is : Resolved
09 October 2012
Please consider the following scenario -
- An apartment under construction bought from builder in Pune in March 2008 ( Registered Agreement with the builder )
- Apt keys handed by the builder in March 2010 ( no Possession letter or any other document )
- Society formed in Dec 2010; however society Share certificate going to be available to the owner by Oct-2012
- Owner wishes to sell the apartment by Nov 2012
What type of capital gain applies in this case ? Short or Long term ?
- An apartment under construction bought from builder in Pune in March 2008 ( Registered Agreement with the builder )
- Apt keys handed by the builder in March 2010 ( no Possession letter or any other document )
- Society formed in Dec 2010; however society Share certificate going to be available to the owner by Oct-2012
- Owner wishes to sell the apartment by Nov 2012
What type of capital gain applies in this case ? Short or Long term ?
09 October 2012
long term as per your agreement, after all income tax works on realizations
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09 October 2012
According to my knowledge.It is short term capital gain, Because you purchased property in March 2010 and want to sold it on November 2012 i.e after 2 years and 8 months approx from the date of purchase i.e Not elapsed 3 years from the date of purchase to the date of sale. So Short term capital gain/loss.
I requesting Mr.G.Balakrishna sir if it is long term please explain me how it is long term because i want to know on which ways we have consider for long term or short term my main doubt is "in the query of Mr.GK sir's he clearly indicated according to the registered agreement property purchased on March 2010" i.e it is clear agreement is on March 2010 so on this basis i told short term. Please explain if i differ.
OM SAI SRI SAI JAI JAI SAI
I requesting Mr.G.Balakrishna sir if it is long term please explain me how it is long term because i want to know on which ways we have consider for long term or short term my main doubt is "in the query of Mr.GK sir's he clearly indicated according to the registered agreement property purchased on March 2010" i.e it is clear agreement is on March 2010 so on this basis i told short term. Please explain if i differ.
OM SAI SRI SAI JAI JAI SAI
09 October 2012
Whatever may be the date u assume as date of purchase of the given dates, it will be STCG / STCL only.
09 October 2012
Income tax laws/rules change yoy by great finance bills and by executive notifications.
latest position is any property more than one year come under long term pls now. how long it is again depends on new bills by the finance ministry.
principle of income tax when money is realized is the day to be taken. means registration takes place when money got or given!
latest position is any property more than one year come under long term pls now. how long it is again depends on new bills by the finance ministry.
principle of income tax when money is realized is the day to be taken. means registration takes place when money got or given!
09 October 2012
Hi All, sorry for a typo in my original post about the date. I have corrected the agreement date as March 2008 in my original post.
Also, the payment was made in installments over a period of 2 years with the last installment in March 2010.
With this situation, do we consider the agreement date as purchase date ? And is it a long term gain ?
Also, the payment was made in installments over a period of 2 years with the last installment in March 2010.
With this situation, do we consider the agreement date as purchase date ? And is it a long term gain ?
09 October 2012
In Such case it is long term asset and gain will be long term.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
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