A booked flat in 2006 and got possession in 2011 and now A wanted to sale the flat and avail the benefit of Section 54 by investing capital gain in house. Please advise me the date of aquiistion of this flat whether it is 2006 or 2011 for taking the benefit of LTG and claim the same U/S 54 of the IT AcT.
Since physical possession is taken only in 2011, sec.53A of transfer of property act is not applied to the transaction in question. Therefore, the income is to be taxed under the head short term capital gains for which the benefit of sec. 54 is not available. Therefore, invariably taxes have to be paid.
When u deales in Capital gain matter ,You must keep in mind when the transfer of property instrument got registred in the assessee's name becasue it is evdence of transfer of property, then you will count long term/ short term capiatl gain accordingly and calculate exemption as per act.
Check whether allotment letter or share certificate was issued prior to possession. In that case you will get benfit because there are judgement supporting that view.Simply booking won,t help.