As explained in Income tax Rules on our National Website, i could see that:
Long term Capital Gain can be expemted from Tax, if it is utilized in PURCHASING the RESIDENTIAL LAND or house,
1. Purchased one year prior to the transfer date of property sold, OR
2. Purchased within two years of the transfer date of property sold, OR
3. Constructed within three years of the transfer date of the property sold.
Now my query is that, i have already paid
A. Some amount for a new property before 4months transfer date of property sold, AND
B. Will pay the remaining amount(as applicable for complete down payment), after 2months from the date of transfer of property sold, AND
C. Ensuring that complete amount arose as Capital Gains, is being utilized for fulfilling A & B.
But the concern is that physical possession of this property would take more than 5years from the date of the transfer of the property, but complete amount towards registry stamp papers will be used for Agreement to Lease and will be done within 2months from the date of the transfer of the property sold & New property is Goverment Authority Alloted Plot.
Thanks & Regards
Ankit
9958521199
CAclubindia
