• Am I liable for STCGT or LTCGT

I had purchased a property, agreement of sale and taken pocession in 2004 but the sale deed was registered in 2016. I have plan to sell the property now in 2016. Am I liable for STCGT or LTCGT?

This property was purchased from APHB( Andhra pradesh housing board) under self-finance scheme and after clearing total loan was registered on my name this year 2016.

Another point is I am a third party purchaser and not a direct allotte from APHB.i have paid the total instalments to APHB.

Legally I became the owner of the property only in 2016, when the sale deed was registered. Kindly suggest.
Asked 11 months ago in Property Law from Hyderabad, Telangana
Religion: Hindu
1) as per the current income-tax rules, long-term capital gains on sale of a property held for three years, attracts 20 per cent tax. 

2)  Date of purchase of the house for the purpose of claim-ing deduction u/s.54 would be the date on which the assessee takes possession of the house and not the date of registration of the sale deed. CIT v. R. L. Sood, (2000) 245 ITR 727 (Del.) 

3) in your case agreement for purchase of house was done in 2004 payment was made by you in in 2004, possession granted in 2004 hence sale would attract long term capital gains tax
Ajay Sethi
Advocate, Mumbai
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Hi, 
If you have the letter from APHB that you can pay dues directly to APHB instead of paying to your seller(the direct allottee), then you are eligible for LTCGT.
Rajgopalan Sripathi
Advocate, Hyderabad
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The relevant date is the date of registration and not the date of possession or allotment. If you sell the property now it will be taxed as short-term capital gain as you have held the property for less than 3 years. The period for which the property has been held is the touchstone to attract short-term capital gain or long term capital gain tax. 
Ashish Davessar
Advocate, Jaipur
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I had purchased a property, agreement of sale and taken pocession in 2004 but the sale deed was registered in 2016. I have plan to sell the property now in 2016. Am I liable for STCGT or LTCGT?

Any capital asset held by the taxpayer for a period of not more than 36 months immediately preceding the date of it transfer will be treated as short-term capital asset.
It will come under STCGT.




This property was purchased from APHB( Andhra pradesh housing board) under self-finance scheme and after clearing total loan was registered on my name this year 2016.
Date of registration of sale deed on your name shall be computed for STCGT





T Kalaiselvan
Advocate, Vellore
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