Opinion Of Eminent Legal Luminaries On Controversial Issues

From Which Date Indexation Would Be Available?

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.

Posted in Income-tax

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