Short term or long term capital gain
I had entered a contract with builder in year 2014 to deliver a specified unit by year 2017 (+_6 months).
However in between builder was declared insolvent and the project taken over by Supreme court and appointed a court receiver in year 2019. The payment was construction link plan and paid earlier as per demand by the builder and there after as per the schedule set by court receiver
Finally the flat was handed over in Nov 2024. Now if I sell this property, will it be long term capital gain or short term capital gain
Actually, if everything should have gone correct by builder the we would have received the possession by year 2018 max and in that case sale in year 2024 this property would be taxed as long term capital gain
Is it in this current situation, the property must be taxed under Long term capital gains assuming the flat delivered on time basis builder buyer agreement. Why should a buyer be penalized by attracting short term capital gain for non delivery of property.
Please advise if this can be treated as Long term capital gain and benefits of investment in new property can be claimed