26 February 2015
My client have purchased a flat from a builder under contract of payment in installment. The first installment was made in 2006, and last installment in 2011, after that he received the possession in same year. Later within 3 months of receiving possession he sold that flat and purchased another flat. My query is whether the capital gain calculated on 1st flat will be short term or long term ? Will it qualify to be a long term capital asset ? Will the purchase date of flat be counted from first installment or from the date of receiving possession ?
CAclubindia
