22 July 2010
I booked a flat by paying token amount and registering "Agreement for Sale" on 13 June 2007. I paid the balance amount to the builder by taking loan on 11 November 2007 and took the possession of the flat. But I registered the "Deed of Sale" on 5th May 2009.
Now I want to sell the flat. If I sell it in December 2010, will the capital gain be considered as long term capital gain?
Please inform which date will be considered as the "date of purchase" in this case? Is it final payment date ? or is it the registration date of "Deed of Sale"?
After what date/month, the flat can be sold to make it "long term" capital gain investment?
22 July 2010
As per IT Act, transfer in relation to capital asset includes:any transaction involving the allowing of the possession of any immovable property to be taken or retained in part performance of a contract of the nature referred to in section 53A33 of the Transfer of Property Act, 1882 (4 of 1882)
So, if u sell the property in dec-2010, it will complete your holding of 3 yrs & would result in Long term capt gain
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