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 TIOLĀ¬706-P&H (2010)]
Asked 9 months ago in Capital Gains Tax from Navi Mumbai, Maharashtra
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.







Shyam Sunder Modani
CA, Hyderabad
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yes u can claim exemption
Shyam Sunder Modani
CA, Hyderabad
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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
Abhishek Dugar
CA, Mumbai
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My pleasure Sir!
Abhishek Dugar
CA, Mumbai
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our pleasure
Shyam Sunder Modani
CA, Hyderabad
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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
Rohit R Sharma
CA, Mumbai
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