capital gains

NARESH (PRACTOCE) (36 Points)

02 January 2009  

 

Please give your views on the follwoing matter:
 
Mr. A has booked a Flat on Jan 2004 and paid 1 lacs as booking advance:
 
He has received the allotment letter in May 2004 and he paid 90% consideration of the total Flat on July and Aug'2004.
 
Till Aug '08 he has neither received the possession nor the agreemnet has been executed.
 
Now if Mr A sells/ transfer the nomination to other person with the consent of the builder he will incurr Capital gains.
 
My Query/ clarifiaction
 
The Capital Gains shall be Long Term as the allotment was made in May 2004.
 
Indexation will be available on the basis of the payments made .
 
Exemption shall be claimed under section 54 and not 54F as the assest will be treated as "CAPITAL ASSET"  and not House Property.
 
Please give your views if you all differ.
 
naresh