Since you signed the sale agreement and paid 80% in Feb–March 2023, that is considered your date of acquisition.
You're selling in April 2025, so the holding period is over 24 months.
It will be treated as Long-Term Capital Gains (LTCG).
Date of acquisition
I have purchased a apartment in banglore. Below are the dates. I purchased an under construction property and after construction completely we got OC. Sale aggreement and construction aggreement- feb 2023 Sale deed registration - jan 2024 OC received - jan 2024 Paid 80 percent amount by March 2023 I am planning sell my apartment in April 2025. Will it come under long term capital gains or short term capital gains ? If aggreement date is considered then it is more than 24 months, if registration date is considered then it less than 24 months.
Asked 14 days ago in Capital Gains Tax
What clause should be mentioned in sale agreement to consider it as acquisition date? And in order to avail tax benefit under section 54 what type of properties can I purchase? If it only residential property then what comes under that?
Asked 13 days ago
- It would be a sale of short term capital asset resulting into the short term capital gain
Here the critical question is only of the holding period. The holding period begins from the date when the asset was first held by an assessee. The capital asset in question is an immovable property. Date of registration of an immovable property is a conclusive evidence of the asset held by an assessee. Alternatively the date of allotment (if an unit is identifiable) can be considered as date of acquisition subject to the facts of the case but it may attract litigation
As you are planning to sell the property on or after 23.07.2024 and if the capital asset is considered as long term then you have the below options for calculation of the capital gain and tax liability. You can opt for lower of the below two options. Assuming your residential status in resident in India.
Option 1
Tax rate is 20%
LTCG= Net sale consideration less Indexed cost of acquisition and improvement
Option 2
Tax rate is 12.5%
LTCG = Net sale consideration less cost of acquisition and improvement
For detailed discussion you may opt for phone consultation
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