Period of holding where date of booking & date of possession

This query is : Resolved

CA Mrinal Gunjan (Querist)
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07 May 2013 One of my clients booked a property in FY 2008-09. The booking date was 19-06-2008.

The buyer made no default in payment. The payment continued till dec.2012.

The buyer is yet to get the possession of the flat. He has transferred the said property in FY-2013-14.

Please tell me from which date should I calculate the period of holding?
I also need a clarification on the following:
"whether date of possession or date of registry be taken for calculating Capital Gains tax in case date of possession is before the date of booking?"

Mrinal Gunjan

Anil Sankar V

Anil Sankar V (Expert)
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07 May 2013 At any case, the date specified in stamp duty papers has to be taken for the computation of capital gain tax.

CA Mrinal Gunjan

CA Mrinal Gunjan (Querist)
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08 May 2013 Sir, what will be the case where the buyer has not yet taken the possession of the property. He has sold his right to acquire the property once it is complete?

Will such giving up of right to hold title before the registry be classified as an asset?

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Anil Sankar V

Anil Sankar V (Expert)
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08 May 2013 Any sort of right is capital asset,it is basically relinquishment of right, it will rise to capital gain.

Capital gains are chargeable to tax in previous year from the previous year in which effective transfer has taken place as per Income tax act,1961