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Deemed capital gain (Income Tax)

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( Author )
21 March 2013

Got into JDA with builder in Oct-12. Could not make builder agree to terms where I could have deferred capital gains till possession is given. Complete rights are given to builder in GPA and took 35lacs refundable deposit. I figured out there is a deemed capital gain which is turning out to be 1.5Cr. I am expecting possession of apartments around May-15.

My understanding is either I pay 20% of 1.5Cr as tax right now or invest in a house for the same within 2years. I do not have cash flow of 1.5Cr. Instead can I buy a Villa worth 1.5Cr by paying 50L as first installment by Jun-13 and showing the intent/obligation of investing the remaining 1Cr over next 1.5yrs by which time Villa will be ready as per developer and claim exemption under 54F for 1.5Cr this year. In short will there equivalent of deemed purchase for deemed gain!

OR are there any cases where people have deferred capital gain till possession of apartments without getting notices from IT?

Also as per 54F I cannot buy or construct another house within 1 or 3 yrs. But then I will get 10 apartments around May-15 as per JDA. How does this effect 54F I will be claiming this year?

Is the 1 or 3 yrs limit from the time I realized capital gain i.e Oct-12 or from the day I took possession of Villa?

You response will be very helpful.


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