capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 January 2010 builder allotted a residential flat dated 06-05-06 consideration of Rs.10.00 Lacs, consideration of Rs.10.00 Lacs was paid on allotment to the builder, however agreement for sale have not been executed .

I had sold the above residential flat for Rs. 50.00 Lacs on 01-01-2010 by executing tri party agreement which is duly registered.
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Now I had booked & allotted another residential flat with the same builder for Rs.60.00Lacs on dated 02-01-2010 & the entire consideration paid on the same date.

Whether the said profit will be treated as long term capital & whether benefit of indexation will be available.

Whether the amount of capital gain reinvested in purchase of another residential flat will be exempted.
Is there any case law to justify your answer.

CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)
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18 January 2010 1) This is LTCG and therefore indexation is available. (Sec 2(29)A & 2(29)B)

2) LTCG is exempt because you invested into another Residential House Property. (Sec 54)

Regards!!!

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