Date of acquisition for determining long / short term

Tax queries 1308 views 3 replies

Vikas Gandhi

Chartered Accountant

37 Points Joined December 2008

The query is with regards to sale of flat.

I booked a flat in December 2009 and received allotment letter also in December 2009. Subsequently I paid the stamp duty and registration fees on 31/03/2010. Since this was a under construction flat, till date I have been paying instalment amounts to the builder. Possession of the property will be received by end of April 2013. If I sell my flat in current position, it would amount to Long Term Capital Gain, as I would be selling my right to acquire a property. However if I sell the property after the possession of the flat, what would be the date of acquistion -

(a) Date on which I received allotment letter,

(b) Date of registration; or

Replies (3)

Mihir

Wealth Manager

5293 Points Joined December 2008

I think date of receiving allotment letter. But wait for others to reply.

Nazia

Asst Manager - Finance

139 Points Joined October 2009

Sale is effected once title of goods is transferred, i don think so allotment letter gives you a right to acquire, (it depends what is stated in that letter). Registration date would be the appropriate date. Possession date is not relevant in any case.