sale of flat would attract long term capital gains as allotment of flat was done in 2009 although possession delivered in 2017

2) If the investor sells the property 36 months after receiving the allotment letter, it will be considered as a long term capital asset. The seller would then need to pay LTCG tax on it,

3)The income tax tribunal said that Section 2(42A) of the I-Tax Act defines short term capital asset as an asset held by an individual for not more than 36 months immediately preceding the date of its transfer. The intention of the law in using the word “held” against words such as “acquired” or “purchased” or “owned” indicates that the absolute legal ownership of the asset is not a principle factor in the determination of holding period. The time from when the individual starts holding the asset is the real determining factor

4)it is not necessary that the individual should be the owner of the asset with a registered deed of conveyance conferring the title on him. Also, the assessee has a right to the property since the date of issuance of allotment letter. Hence, execution of sale deed at a subsequent date is irrelevant, and the transfer of ownership of a property in the hands of an owner is not the criterion for determining holding period of the property.

The capital gain is calculated from the date of your conveyance deed in June 2017.

If you sell your property within 2 year of the conveyance deed you have to pay short term capital gain tax on the difference amount of sale consideration minus total cost as per your conveyance deed.

Hello,

1) As the Buyer's Agreement was entered upon in the year 2009 which is way beyond three years from now, your instance will fall under Long Term Capital Gain.

2) You are therefore safe in selling to buy a new one in Haryana as your gain will be LTCG and so crresponding tax liability.

Dear Concerned,

As the money which has been paid to the builder is over the years and the right to own this property accrued the day first payment was made - LTCG will be paid after 3 years of selling this property if the money is not re-used.

Best of Luck

1. Long term capital gain will be attracted as the allotment was made in the year 2009. Sale of property after 3 years from allotment attracts LTCG.

2. The Punjab & Haryana High Court has held in the case of Mrs. Madhu Kaul Vs. CIT that identification of the flat or physical delivery of possession is irrelevant as right to hold properly stands crystalised upon allotment. The allotment of a particular flat and delivery of its possession would relate back to the allotment. The payment of balance installments, identification of a particular flat and delivery of possession are consequential acts, that relate back to and arise from the rights conferred by the allotment letter.

1. Your multiple payment started in the year 2009 but did not end there but continued till at least 2016.

2. You can not apportion your capital gain on each installment paid from the sale proceeds which you received in the year 2017.

3. Hence, your period for calculating the capital gain will start from the year 2016 when you had made the last payment for buying the said flat.

4. If you have registered the flat after paying the stamp duty (which should be included as cost of buying the flat) then the said period will start from the date of registration of the flat.

No doubt there are many views in this regard, however it was always held that the possession or registration of sale deed is taken into consideration for calculating the capital gains.

Therefore, the Department in many cases has raised an issue that the date of acquisition of property can be considered to be only when actual possession is taken of the flat by the buyer and not from the date on which it had booked the flat with the builder.

The contention of the assessees has been that they had booked the flats with the builder with the intention to acquire the property as such. Accordingly, it is in continuation of its booking agreement entered into with the builder that payments are made and possession of flat is handed over by the builder to the buyer.

Therefore, it cannot be said that initially the intention of the buyer was to acquire only a right in the property to be constructed and subsequently it was another right which has been acquired by the buyer in the form of the flat. The intention all along has been to acquire the flat and, therefore, the period of acquisition of the property is to be reckoned from the date on which the flat had been booked by the buyer with the builder and payments had been made pursuant to the agreement for the purchase of the flat.

In support of above legal proposition, reference can be made to the Circular of CBDT No. 471 dated [deleted]. In the above Circular, the CBDT has clarified the position in regard to flat booked by an assessee under self finance scheme of DDA. It has been clarified by the CBDT that the period of holding of the property will be counted from the date of issuance of allotment letter by the DDA pursuant to which the installments have been paid by the assessee and construction has been made by DDA. The aforesaid Circular of CBDT is equally applicable in the case of booking of flats with the builder wherein also the construction is made by the builder pursuant to payments made by the buyers. Irrespective of the fact whether the agreement with the builder may have certain clauses which may not make the buyer owner of the flat as such, the intention of the builder as well as of the buyer in all these cases is that the buyer will make payment to the builder and builder will construct the flat and hand over the same to the buyer. Accordingly, the clarification given by the CBDT is equally applicable to the booking of the flats with the builders and period of holding will be counted from the booking of the flats.

1) not necessary to pay brokerage in respect of direct sale

2) TDS has to be deducted

3) no GST is applicable

No GST is applicable.

Most likely there may be no other expenses involved after this

1.Since the entire payments was received before 1.7.2017, you won't have to pay GST on the said transaction.

2. Any transaction i.e. payment taken after 1.7.2017 for a flat for which no CC has been obtained till then will be charged with GST.