Vipin Panchamia (Head - Finance & Accts) 19 December 2012

Capital gain

A flat is booked in one of the project before 4 years. Letter of allotment issued to us. However final agreement is not yet entered into. 95% of the total value as per allotment letter is paid.

Now if i sell the same then

a) Can i take the profit as capital gain? Will it be a long term capital gain?

b) Only Memorandum of Understanding is entered into with new buyer and Assignment agreement is entered into with the builder to assign my right in flat in favour of new buyer. Is this documentation OK?

Regards

Vipin D. Panchamia

Reply Follow

3 Replies

sitaramaiah (audit manager) 23 December 2012

AS per no of judgments

u r the deemed owner. so u have the right to sell the property . u dont have any problem..proceed further

Rushit Sheth (Advocate) 31 December 2012

According to the Transfer of Property Act, you need to have ownership of the porperty that you sell. Since you have not made a registered sale deed, you cannot be the owner of the property.

No can can transfer what one does not have.

There cannot be question of capital gain tax in your case in my opinion.

All the best.

Rush*t Sheth (Advocate).

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