• Long term capital gain on sale of residential property

I have purchased an under construction apartment in Aug 2015 by paying 100% of the consideration to previous owner on resale basis and executed assignment agreement with seller and builder. I have also started my EMI from same month. The Registration of the property is still pending as it is still not handed over to us. In this case what will be the period for calculation for LTCG as I am yet to get possession of the flat. Also can I claim loss on self occupied house property u/s 24. I don't claim HRA deduction u/s 10.
Asked 8 years ago in Taxation

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3 Answers

to qualify the investment in case of builder flats, the crucial date is the date of allotment of the residential flat and the payment of installment is a follow up action

2)The date of acquisition of the said flat shall be the date on which the allotment letter is issued to the intended buyer.

3) in your case august 2015 would be regarded as date of acquisition of flat . Merely because the builder failed to hand over possession of the flat to the taxpayer within the specified period, the taxpayer cannot be denied the benefit of the said benevolent provision.

Ajay Sethi
Advocate, Mumbai
99779 Answers
8145 Consultations

You can claim ownership or title to the property only after the sale deed is executed and registered on your name.

For calculating LTCG the date of registration may be taken into account though you have already paid the full consideration amount.

You should not have paid the entire amount in a haste anticipating immediate registration.

Well if the delay is inordinate then you may seek interest on the amount your have paid towards consideration

Without acquiring the property what prompted you to disclaim HRA, you should understand that you can initiate action not to claim HRA only after the property is registered on your name, until then the property do not belong to you though you have paid the full consideration amount

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

Can I claim loss on self occupied House property from the date of assignment agreement in place HRA exemption u.s 10(13A) of IT Act 1961?

You may not be eligible for this exemption may be because you have not got the property registered in your name and this deed of sale agreement will not confer title to the proeprty

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

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