Agreement to sell treated as transfer for capital gains when possession or enforceable rights exist, enabling exemption after prior purchase.

Agreement to sell treated as transfer for capital gains when possession or enforceable rights exist, enabling exemption after prior purchase. https://www.taxtmi.com/highlights?id=96213 Agreement for sale creating an enforceable right and accompanied by substantial advance consideration and irrevocable commitment was held to constitute a transfer under the statutory definition, because it created a right in personam enabling specific performance; consequently the earlier purchase within one year prior to that date qualified for the capital gains exemption on acquisition. The legal test applied emphasised creation of enforceable rights and transfer of possession or rights to enforce the agreement as determinative of the date of transfer and entitlement to exemption. en-us Wed, 21 Jan 2026 08:41:28 +0530 Wed, 21 Jan 2026 08:41:30 +0530 TaxTMI RSS Generator Agreement to sell treated as transfer for capital gains when possession or enforceable rights exist, enabling exemption after prior purchase. https://www.taxtmi.com/highlights?id=96213 Agreement for sale creating an enforceable right and accompanied by substantial advance consideration and irrevocable commitment was held to constitute a transfer under the statutory definition, because it created a right in personam enabling specific performance; consequently the earlier purchase within one year prior to that date qualified for the capital gains exemption on acquisition. The legal test applied emphasised creation of enforceable rights and transfer of possession or rights to enforce the agreement as determinative of the date of transfer and entitlement to exemption. Highlights Income Tax Wed, 21 Jan 2026 08:41:28 +0530 https://www.taxtmi.com/highlights?id=96213