Capital gains
Querist :
Anonymous
(Querist) 24 March 2010
This query is : Resolved
Short term capital gain comes in picture if property is sold before completion of 3 years.
This period of 3 yers is counted from which date, date of booking (of apartment/shop/plot/...), date of possession or date of registration in the court?
These 3 dates that I mentioned may be few years apart.
mahendrakumar
(Expert) 24 March 2010
from the date of registration of the deed.
Manish Singh
(Expert) 24 March 2010
in my view the same shall be taken from the date of the sale deed since u/s 45 of the income tax act, the word transfer has been used which means the conferment of title to the other party hence possesion or registration shall not matter for consideration for computing capital gains.
Querist :
Anonymous
(Querist) 24 March 2010
If you book a new property then there is no sale deed.
There are 3 dates in the following order,
Booking date
Possession date
Registration date
Manish Singh
(Expert) 24 March 2010
Dear Mr. anonymous,
its not possible to register an immovable property without a sale deed.
mahendrakumar
(Expert) 24 March 2010
I still belieive,it is from the date of registration of the deed. That is the date of actual transaction and the deemed date,wherein the full consideration amount for the transaction paid.
Booking date has significance nor the possession date.
mahendrakumar
(Expert) 24 March 2010
correction booking date has no significance nor the possession date
Manish Singh
(Expert) 24 March 2010
please go through the following case law of the apex court :
"Nanda Ballabh Gururani v. Maqbool Begum (1980) 3 SCC 346, :In this case a sale deed was executed on July 27, 1974, and it was offered for registration on July 28, 1974. It was transcribed in the books in which the documents are registered on October 11, 1974. The question for determination was whether the sale will operate from the date of registration or from the date of its execution. The Supreme Court held that in view of the provision contained in section 47 of the Indian Registration Act, it would operate not from the date of its registration but from the date of its execution. This decision of the Supreme Court squarely applies to the facts of the present case and following the same, it is clear that the sale deed will operate from the date of its execution, i.e., October 11, 1967, and not from the date of registration."
i hope it answers the query which eventually means the capital gains shall be computed from the date of the execution of the sale deed.
Querist :
Anonymous
(Querist) 07 April 2010
Dear Manish sir,
Please clarify what is sale deed in case of a new property.
Here is the scenarios:-
* An individual books a new flat from a builder by paying 10% of amount in Jan-2008.
* He pays rest amount in 2 years till Jan-2010.
* Builder gives possession of flat in Jan-2010.
* Flat is registered in the court/registrar in Feb-2010.
What's the date of sale deed, which according to your reply is the date for calculation of short term capital gain?
Thanks in advance.
