Income tax- capital gains

gulamabbas (Querist) 29 March 2012 This query is : Resolved
One person entered in to agreement for sale with a builder in Oct 2007. Title was not conveyed. Only allotment letter was received. After more than 36 months, the property was sold to other person by builder where in querist was a confirming party. Querist made a profir in the transaction.
Query: Whether the gain is long term since title was not acquired only right to acquire property was in favour of querist which was extinguished. Pls adv. Tks

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A V Vishal (Expert) 29 March 2012
Yes LTCG is attracted.

prabhakar singh (Expert) 30 March 2012
Yes Mr. Vishal is right.Long term capital gain would be attracted since interest was passed on after 36 months.

Guest (Expert) 30 March 2012
You query does not seem to be complete. There is a difference between agreement and allotment letter. You have mentioned both that you entered in to agreement and also received allotment letter. The question arises, did you make full payment for the property and as a result thereof you were alloted apartment and issued allotment letter for that? If so, what was the date of issue of allotment letter?

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