- Date of sale will be June 2020 and date of purchase was 12.04.2018. In case of immovable property, holding period is 24 months for classification of gain to LTCG. It would be LTCG.
Sale of Flat
I bought a under construction property and signed Agreement of sale with builder on Apr 12 2018. I will register this property in March 2020 and am planning to sell in June 2020. I have read in lot of forums that date of commencement to calculate capital gains would be on the intial allotment from the builder which in this case is Apr 12 2018. In this case, would my gains come under LTCG? Can you please clarify.
Asked 5 years ago in Capital Gains Tax
Thanks Mr. Vivek. Just wanted to confirm Registration date would have no bearing in this case right?
Asked 5 years ago
Yes if you have the proper allotment letter from the builder then that allotment letter will be considered as date of purchase and you will have long term capital gain.
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Thank you
Hi
Yes, the allotment date i.e. April 18 shall be considered as date of acquisition. And since you are selling the property after expiry of 24 months from the date of acquisition, it will be long term capital gain.
Yes, date of allotment shall be considered.
Hello,
Yes, the date of allotment from the builder will be considered as the date of acquisition.
And since you are selling it after 24 months of holding period, the gains would be LTCG.
I hope that this answer satisfies your requirements.
Regards,
CA Hunny Badlani
Yes, the registration date won't be considered as the date of acquisition.
Dear Sir,
Yes, your understanding is correct.
The date of allotment letter would be considered as the date of acquisition.
Hello Sir,
Yes, it would be LTCG.
The holding period would be counted from date of allotment.
Thanks for your response. I paid 10% of flat cost and signed Agreement of Sale. I am paying the rest 90% in installments based on project completion milestones set by the builder. This will not change anything from LTCG perspective right?
Asked 5 years ago
No, it will not change anything from LTCG perspective.
Yes, Registration date would have no bearing in this case.
No LTCG won't be affected.
Yes, it won't affect the LTCG perspective.
Yes, it wont affect the LTCG perspective.
Right.
Indexation of costs of acquisition shall be made according to the index of respective year of payment.
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