Registry of flat under section 54

It's on your understanding with builder many experts think that there is no need of registry because section 54 says that you should purchase the flat and the purchase is considered as complete when the payment is made and you are having the complete possession of the flat. Many experts think that purchase deed is not necessary for proving the possession of flat.

However as far as my experience goes I have seen income tax officer ask for purchase deed whenever there is any query relating to a property so I would suggest you to register your purchase rather than taking a risk.

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Thank you

Hi,

There is no need of registry as decided in many cases.

Please find below the article on recent case :

https://taxguru.in/income-tax/section-54-54f-benefit-cannot-be-denied-for-mere-non-registration-of-sale-deed.html

However, for safer side you can register your purchase.

Hi

If you are buying flat in resale then registry needs to be done within 2 years.

However, if you are buying an under-construction flat then the flat should be constructed within 3 years.

Hi,

Only agreement is sufficient proof.

Section 54 doesn't mention any documents required to prove that house has been purchased it only says that you should have purchased house and it should be in your possession. Now if in the agreement it is mentioned that you have purchased the house and it's in your possession many experts consider it as a proof. But from my experience I believe income tax officer always ask for proper sale deed to consider it as correct purchase agreement so I would suggest you to make a proper sale deed irrespective of the person from whom you are purchasing.

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Thank you

Hi,

In many cases, it is decided that once the assessee has paid substantial amount to purchase the property within a period he has become entitled for exemption u/s 54 of the Act. just entering into purchase agreement is sufficient.

But in practical scenario, it is bit difficult to convince ITO without proper registration. It is advisable that make a deed properly.

Hi,

It is not mandatory to get the registry done to claim exemption. However it is always advisable to get the registry done.

I would suggest you get the registration done

Registry alone is not the deciding factor. If you have invested all the money, construction is complete and got possession, then even if registry is pending, exemption can be granted

Hi

Yes, you can register the property later. But agreement should be executed withing 2 years time frame in order to get capital gain Exemption.

Hi

Agreement to sale is sufficient in case of resale flat. Only proof of investment is required in order to claim exemption.

Hi,

- To claim ownership, full payment of consideration alongwith possession is sufficient.

Thanks