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Capital Gain

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This query is : Resolved

sanjay rastogi (Querist)
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26 April 2011 I booked a flat in 2005. I am likely to get possession in the next three months, but i want to sell it.

If i sell this pre possession, can it be understood that i am selling the right in the flat and not flat itself and since the right was held for more than 3 years,the gains arising from sale thereon is in the nature of longterm capital gain. I have paid 17.5 lacs till now and i sell for 30 lacs . Reinvestment of sale proceeds i.e. 30 lacs OR just profits i.e 12.5 lacs (??) into another residential property will qualify for tax exemption under section 54F.Can it be a 3rd or a 4th ready to move residential property?? or can it be aproperty under construction to be delivered within two year.

IS MY UNDERSTANDING CORRECT??? Can I take this benefit.

Selling post possession, i am clear that unless i sell after 3 years, the exemption cannot be taken.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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26 April 2011 1. 54F can be availed.
2. Post possession sale attracts short term capital gains since 36 months holding is not complied after taking possession.

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