24.12.2014
Date acquisition of under construction builder flat
1. On 25.09.2009 one M/S ML - registered company booked an under construction flat with a builder on and Apartment Buyers Agreement is signed on 23.08.2010. 2. On 24.12 2014 Mrs AV bought the rights of the flat by paying the amount which was paid to the builder from M/S ML and the builder transfers the rights of M/S ML in favour of Mrs. AV . Endorsement in favour of Mrs AV is made in the Apartment Buyers Agreement in her favour. 3. On 21.02.2017 the local Municipal Corporation authorities assessed the flat for property tax and the builder paid the property tax from that date . 4. The builder sends offer of possession to Mrs AV vide letter dated 27.07.2017. 5. The final payment is made and the builder handed over the possession of the flat to Mrs AV on 20.05.2018. 6. Mrs AV sells her one house property on 30.01.2019 and wants to avail exemption of LTCG under section 54 for the acquisition of flat so acquired as details above What date should be considered as date of acquisition of the flat to avail Section 54 benefits ? a. 24.12.2014 when she purchased the rights of the under construction flat b. 21.02.2017 when the local municipal authorities assessed the under construction flat for property tax . c. 20.05.2018 when she took over the possession of the flat
Asked 4 years ago in Capital Gains Tax
There are various judgement of various court some say it's date of allotment letter, some say it's date of registration and possession.
To be on safe side you must choose the date when deed was registered and possession was provided to you but if you want more benefit and can take justice you can take agreement date as date of purchase and take indexation.
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Thank you
Dear Sir,
Hope you are doing well !!
The starting date for the holding period also continues to be a matter of litigation because of different rulings from high courts and Income Tax (I-T) tribunals. The most common view, however, is that the date of allotment should be considered for determining the holding period rather than the date of possession.
Hello,
Date when Mrs. AV has an identifiable right in the property and has made the full payment would be regarded as the date of acquisition. Therefore, it would be 24.12.2014.
I hope this answer satisfies your requirement.
Regards,
CA Hunny Badlani
Hi
Date on which rights are transferred is considered.Here it will be 24.12.2014.
Hope it helps
Hello Sir,
The date of acquisition of the flat to avail Section 54 benefits would be 24.12.2014 when she purchased the rights of the under construction flat.
The date of acquisition should be 24.12.2014.
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