Capital Gains Taxation Should Be Based on Receipt of Possession, Not Occupancy Certificate: ITAT

The ITAT has ruled that capital gains tax should be triggered based on the date of possession, not the issuance of the occupancy certificate. The ruling came in response to a dispute over when capital gains tax liability arises in property transactions. The ITAT held that the transfer of property for tax purposes occurs when the buyer takes possession, irrespective of when the occupancy certificate is issued. This decision provides clarity for taxpayers and real estate investors, aligning capital gains taxation with the actual transfer of ownership. The ruling is expected to have wide-reaching implications for property transactions and the timing of tax liabilities.