Capital gain

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Querist : Anonymous

Querist : Anonymous (Querist)

18 July 2013 I have booked under construction residential flat in Nov 2011 and paying installment to builder as per slab. Still the possession is not given by the builder and some consideration is still pending for payment.

I sold one residential flat in same city in the month of Jul 2013.

Can I claim Capital Gain Exemption under Sec 54 against the new under construction flat.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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18 July 2013 You can claim Section 54 benefit subject to-
1. Payments made within 1 year prior to transfer of the residential flat.
2. Payments made within 2 years after such transfer.
(If you do not get possession thereafter, not only the exemption claimed by you will be in danger but also the amount given as advance will also be.)
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3.Completion within a reasonable time is required.
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Querist : Anonymous

Querist : Anonymous (Querist)

19 July 2013 That means whatever installment payment I have made to builder after Jul 2012 i.e. one year prior to transfer of residential flat will qualify for capital gain exemption although new residential flat purchase agreement is before July 2012.

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