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Capital gain against property sale

stanley (Propreitor) (85 Points)

03 October 2016

I sold a property in 2013 and this year bought another property from a premium builder. I opened a CG account and made all payments to the builder. As per the timelines for buying property as per the IT Rules, i should have got this property registered in my name by October 2016 but due to some issues with the builder, he has promised for registration by Dec 2016.

He has handed over the keys and collected the registration amount. While he is arranging for bulk registrations, the process has been delayed by few months.

i have made full payments to the builder from my CG Account, do i end up paying the CG Tax now just becuase the property is not registered yet ?

I have all docume

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3 Replies

ANKUR TAH (Teacher Consultant and CA finalist.) (543 Points)
Replied 03 October 2016

As per income tax registration is not everything. Important thing is when you became beneficial owner.
Registration procedure always time taking matter that's why income tax dept wouldn't focus on that. They just check out whether you have full repossession on house or not.
In your case I assume you have paid full of amount and ownership you get with in 2 year from sale of your old house property.

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CA Harshal Totla (Chartered Accountant) (2229 Points)
Replied 03 October 2016

What is more important here is that the construction of house property is completed within 3 years from the date of transfer or new house property is purchased within 2 years from the date of transfer and possession should be handed over to you.This is the main essence of section 54/54F requirements. What is pending is merely a legal formality in your case which is not a issue in deciding whether capital gains exemption will be allowed to you or not.

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