• Date of acquisition for the purpose of determining capital gains

I am a NRI. I want to sell my  flat in Pune. I made the payments in instalments to the developer over period from 2008-2014.

1. What should be considered as the date of acquisition for the purpose of capital gains for a flat purchased
Date of allotment Nov-2008
Date of registration of agreement Dec-2009
Date of possession- Mar-2014
Date of sale - Dec 2015

Would the property sale be taken under long term capital gains.?

2. What is the amount of TDS that the buyer should deduct. If the sales is considered under long term capital gains, then it would be a capital loss after considering the effect of indexation.

Asked 2 years ago in Capital Gains Tax from Pune, Maharashtra
Dear Sir,

As per the details furnished by you, the sale of your above mentioned flat would fall under Long Term Capital Gain.

TDS would be deducted @ 20.6% if the amount of sale proceeds is less than 1Cr or 22.66% if the amount of sale proceeds is more than 1CR.

Hope this clarifies your doubts.

Thanking You.


CA Rohit R Sharma.
Rohit R Sharma
CA, Mumbai
2089 Answers
90 Consultations

5.0 on 5.0

Dear Sir,

With respect to your quarry below is my answer :

1. Date of Acquisition for the purpose of capital gain shall be Date of allotment i.e. November,2008 and hence sale of property shall be treated as long term capital gain.

2. TDS deduction is done at flat rate of 1% on total sale value of property and hence it do not have any impact on long term or short term capital gain as per the provisions of Income Tax Act,1961.
Vishrut Rajesh Shah
CA, Ahmedabad
605 Answers
10 Consultations

5.0 on 5.0

The date of allottment will be taken in some cases and in many cases it is date of possession. It is subject matter of debate. 

In case of TDS if the sale vale exceeds 50 Lakhs then 1% TDS needs to be deducted by the buyer

Shyam Sunder Modani
CA, Hyderabad
1408 Answers
95 Consultations

5.0 on 5.0

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