Hi, I had received the possession of my flat on Feb'15. Recently, I have decided to sell my flat as it is a 1.5 bhk since I plan to take a 2bhk flat. Please let me know if it is okay for the buyer party to do the registration on Feb / Mar'17 so that I dont get hit by Short term capital gain tax.
Dear Sir,
Short term capital gain is applicable to seller and not to buyer.
However if you sell it after March 2017, you will not have short term capital gain. You will have long term capital gain.
Please feel free to call/revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
As per present income tax act, to qualify any assets as long term one should hold assets for 3 years. However, in the recent budget the period has been proposed to reduce to two. But it's applicable from April 17. So, you should make the registration April 17 onwards
Which period is considered for any capital gain tax, the date of agreement or the date of possession? Cos in my case, the date of agreement is Sept 2011 whereas the possession date is Feb'15.
So, if the agreement is made in April'17, I wont come in Short Term Capital Gain tax. Also, I would have 12 months of time to invest the difference money to settle my current home loan and invest the remaining money in the other flat, which I plan to purchase. Please review and confirm if this is proper.
Date of agreement is considered
Yaa right... that will be good option
Hello Sir,
I will directly address your third query and yes it would be wise to make the agreement in April'17 as that will sort out all of your issues.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
Sir as per budget 2017 the a sale of property is stated as LTCG if it is held for more than 2 years. Thus in your case as you got possession on Feb 2015 you better sell in April 2017 to get LTCG benefit. Budget 2017 is applicable from FY 2017-2018.
Registration date is counted as date of possession. it is better registration is done after March 2017
Yes sir , your view is proper
