Topic

holding period

2 articlesLatest October 2026
Section 2(42A) IT Act | Holding period for capital gains starts from allotment letter date, not registration : ITAT Surat
Case Law Analysis
|Income Tax Appellate Tribunal

Section 2(42A) IT Act | Holding period for capital gains starts from allotment letter date, not registration : ITAT Surat

The ITAT Surat ruled that for capital gains computation under Section 2(42A) of the Income Tax Act, the holding period commences on the date of the allotment letter, not the date of registration. This clarification enables purchasers of builder flats to qualify for long term capital gain treatment and claim exemption under Section 54.

Section 2(42A) Income Tax Act | Holding Period for Capital Assets Begins at Final Allotment, Not Provisional Letter: ITAT Mumbai
Case Law Analysis
|Income Tax Appellate Tribunal

Section 2(42A) Income Tax Act | Holding Period for Capital Assets Begins at Final Allotment, Not Provisional Letter: ITAT Mumbai

ITAT Mumbai rules that the acquisition date for capital gains computation under Section 2(42A) of the Income Tax Act is the date of final, binding allotment and registration, not the issuance of provisional letters. This precedent clarifies the holding period calculation, impacting property transactions and tax liability assessments for taxpayers.

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