In this case
Yes it will commence from the date of allotment.
You cannot claim exemption U/s.54 as the sale is made before 3 years of allotment.
For Section 54 which is date of ownership
i was allotted 2BHK flat for Rs 13.4 lcs of 1275 sq ft flat on becomin memebr of housing society in 2014 .Specific flat was allotted in 2015 june I paid cost over 10years till 2014and got possession in 2015 Dec. I sold flat in 2016 march inv.Iested money for purchase of flat in 2015 my taking loan from bank and borrowing and my retirement dues and after sale in march 16 i repaid to my friend and bank loan is still ther .Am i entitled to benefit of sec54 for capital gain on sale of flat .Whether every payment over 10 years will be indexed for the purpose of capital gain .pl see case law as under QUESTION Whether determination of title to the property would commence from the first date of allotment or the subsequent date of allotment of the actual flat number and delivery of possession for the purpose of assessing long term capital gains. Ans. Title to the property is transferred with the issuance of the allotment letter and payment of installments is only a follow up action and taking of the delivery of possession is only a formality. [Vinod Kumar Jain Vs CIT TIOL¬706-P&H (2010)]
Asked 8 years ago in Capital Gains Tax
I made mistake in asking question . confirmed allottment of Flat was done in 2004 in place of 2014 (as stated in my question) when i became member of society and i paid cost over 10 years by raising bank loan .specific flat though was given in june 15 after 11 years .and possession in dec 15 .pl guide me regds
Asked 8 years ago
yes u can claim exemption
Dear Sir,
The date on which letter of allotment was alloted will be considered as date of purchase. Hence in your case it is 2004.
you will be entitled to exemption under section 54.
In case you have made any substantial improvement in the property, cost of same can be indexed using indexation of year of improvement as cost if improvement .
purchase cost will be indexed from 2004
In case you require any clarification on the above, please let us know
Thx a lot Abhishek God bless
Asked 8 years ago
My pleasure Sir!
our pleasure
Dear Sir,
Yes you can very well claim the Benefit of Section 54 as the date of ownership will be counted from the Date of Allottment, which in your case is more than 3 years.
Trust this clarifies your query.
Feel free to get back/ call back for any further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB - GEN, CERT. FAFP
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