HI,
I have pruchase an commercial property from bank out of settelmet case pending with bank in jan 2007 i.e in FY 06-07, and got the possession of peroprty in Mrach 2007, property agreement and registration was done in Sept 2010.
I have sold the same property on Dec 2010 can any one help me out whether in said transaction capital gain arised is short term or long term (pl give me case law if any..)
Tnx in Advance.
The gain would be a long term Capital Gain.As per my undersatnding the purchase date or tthe date of posession which ever is earlier would be considered for calculation of capital gains.From that date to the date of sale if the period of holing is 3 years then it would fall under long term gain.
As per the transfer of property act, transfer was made in the FY 2006-07 So indexation benifit shall be available and the gain shall be long term.
Chirag N Shah & Associates
Mumbai
CA Inter
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