Allotment Date, Not Registration: ITAT’s Landmark Ruling Changes How House Property Sale Gains are Computed

The ITAT has made a landmark ruling that changes how gains from the sale of house property are computed, stating that the allotment date, not the registration date, is the relevant date. This decision impacts the calculation of long-term or short-term capital gains, which in turn affects the tax liability. The ruling provides clarity and could lead to significant tax implications for property sellers, as the period of holding the asset is crucial in determining the applicable tax rates.