|QUERY:||Payment of regular installment for the house to be allotted. The house has been booked but the same will the delivered later on after several years (Possession later on – on completion of project by the housing board of the Govt./ Builders). It can be illustrated as under:
1. House booked & advance taken 1-4-1995
2. Installment payment on regular basis from 1-4-1996
3. House allotted (No. given) 1-4-2007
4. Possession given 1-4-2008
5. Registration u/s 17A 30-10-2008
6. Sold on 30-9-2011
What will be position of indexation for the cost of acquisition? What will be the date of acquisition?
|ANSWER:||From the fact it is clear that house is held by the assessee from 1-4-2008 when the possession is received. Therefore indexation would be available from the same date and it would be long term capital gain as the same was sold on 30-9-2011, being held for more than 36 months.|
|EXPERT:||CA. H. N. Motiwalla|
|CATCH WORDS:||capital gains, cost of acquisition, indexation|
Opinion Of Eminent Legal Luminaries On Controversial Issues
From Which Date Indexation Would Be Available?
Credit: Several of the queries and answers are reproduced with permission from the AIFTP Journal. We thank AIFTP for generously allowing us to host their research material.
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