I received allotment letter from the Central Government Employees Welfare Housing Organisation for a flat in 2007. I paid the cost in 5 installments and got possession of the flat in 2014 and registered the flat in 2021. Now I want to sell the flat before March 2021. Shall be grateful to know if I am eligible claim exemption under long-term capital gain if I buy a house within the next six months with the entire sale amount.
This can be a trick one! Under this scenario, you can consider ‘Date of Registration’ for holding period and capital gains calculations purposes. If the registration date is used then holding period is long-term and in case, you use the possession date then your gains can be considered as short-term capital gains.
Some experts may argue that the ‘allotment date’ can be considered instead of the ‘registration date’. This is where , you can find conflicting judgement orders given by the honorable Supreme court and IT Tribunals / High courts.
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How to calculate Holding Period & Capital Gains on sale of an Under-Construction property?
Suggest you to kindly consult a CA in this regard!