Capital gain

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P.C. Chaturvedi (Querist)

12 March 2015 The capital gain from the sale of house is invested in purchase of new flat. Amount of is paid in installment (booking amount, and payment at various stages of flat completion)over a period of say 3 to 4 years. The income tax rule does not permit sale of this flat for three years. My question is from which date three years? Is it from the date of taking possession or from the date of first agreement and payment or from the date of registration of flat (which may be earlier than date of possession and payment of last installment. In case it is from the date of taking possession then quite a few installments would remain invested for more than three years. Kindly clarify.

Vijay Kalia

Vijay Kalia (Expert)

12 March 2015 You may sell after three years from the date you have full rights to sell which is date would be after possesion upon registration of sale deed in your favor. Installments give you a vested right but not not complete right but it may happen that you are given full rights of sale on allotment and/or possession in which case three years can be calculated from such date as complete ownership is vested in you over the house property.

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