Friends i don`t agree with Mr.Dheeraj Aggarwal`s answer. I beleive Possession Date is taken in cases where transfer could not be completed as Law says only by way of proper Registration Transfer of Capital Assets completes but in general practice when apartments are being bought with builders in majority case they give possession much before and REGISTRY takes place some times very late so to accomodate it Law took consideration of Possession as Part Performance of Transfer of Property as per section 53 A. But as soon as Property get transfered by way of Registry its meets requirement of Transfer of Capital Assets as per section 2 (47) (i) and when it meets need of this section why should we meet requirement of section 2 (47) (v) which state Part Performance of a contract in section 53 A of Transfer of Property Act.
Please Respond whoever agrees / disagrees with me but pls quote the LAW/Act Sections and Case Laws if possible.
Capital gain on capital asset are applicable on transfer of asset so transfer date will decide what is acquisition date and what is date of sale.so first let us talk about what is the meaning of transfer.
transfer, in relation to a capital asset, includes,
the sale, exchange or relinquishment of the asset ; or
the extinguishment of any rights therein ; or
the compulsory acquisition thereof under any law ; or
in a case where the asset is converted by the owner thereof into, or is treated by him as, stock-in-trade of a business carried on by him, such conversion or treatment or
the maturity or redemption of a zero coupon bond; or
any transaction involving the allowing of the possession of any immovable property to be taken or retained in part performance of a contract of the nature referred to in section 53A 25 of the Transfer of Property Act, 1882 (4 of 1882) ; or
any transaction (whether by way of becoming a member of, or acquiring shares in, a co-operative society, company or other association of persons or by way of any agreement or any arrangement or in any other manner whatsoever) which has the effect of transferring, or enabling the enjoyment of, any immovable property.
As per Transfer of property act 1982 section 54 ,sale of immovable property shall be registered if property value is more than 100 other wise sale will not be effective.section 54 reproduced as under
54. "Sale" defined
"Sale" is a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised.
Sale how made: Such transfer, in the case of tangible immovable property of the value of one hundred rupees and upwards, or in the case of a reversion or other intangible thing, can be made only by a registered instrument.
In the case of tangible immovable property of a value less than one hundred rupees, such transfer may be made either by a registered instrument or by delivery of the property.
Delivery of tangible immovable property takes place when the seller places the buyer, or such person as he directs, in possession of the property.
Contract for sale: A contract for the sale of immovable property is a contract that a sale of such property shall take place on terms settled between the parties.It does not, of itself, create any interest in or charge on such property.
so from above the transfer date of immovable property depend upon two things
date of registration
date of possession of immovable property
in general practice date of registration and date of possession is same but in some cases it may be different so if amount is paid and possession is given even registration is pending then transfer date will be date of possession by the purchaser under section 53A of transfer of Property Act as explained in definition of "transfer" under Income Tax Act
On the basis of above details in my opinion the answer of my point should be DATE OF REGISTRATION. as it is the final action denoting the Transfer of Ownership.
I will appreciate an active participation as its a point where i have seen big confusion.
and need a strong solution to conclude the answer.