Capital gain tax

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P M Suresh (Querist)
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12 June 2013 Dear Sir,

I had booked a new flat in Bangalore in Jan-2011, the total cost being Rs. 45,00,000/-, and started paying the builder in installments. After completion of construction, I got the flat registered in Feb-2013 in my name for the above amount.

Meanwhile, I sold a property in Oct-12 and earned a capital gain of about Rs. 30,00,000/-.

Am I allowed to adjust the above Capital Gain I earned in the new property?

In case more details about the purchase / sale are required, please let me know.

P M Suresh

Rupesh Jain

Rupesh Jain (Expert)
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12 June 2013 IT IS SHORT TERM CAPILTA GAIN
IT IS NOT POSSIBLE TO ADJUST WITH NEW PROPERTY

P M Suresh

P M Suresh (Querist)
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12 June 2013 Dear Rupesh,

Thank you very much for your quick response.

I forgot to mention that the property I sold was acquired in 2001, i.e. the property acquired in 2001 was sold in 2012 (after 11 years). So the Rs. 30,00,000/- Capital Gain I earned, I believe, is Long Term Capital Gain.

For the new property, the Sale Deed registered was for Rs. 15,85,000/- and I also had entered a construction agreement with the builder for constructing the flat for Rs. 25,00,000/-. With other taxes, registration charges, etc. the total cost of the flat amounted to approximately Rs. 45,00,000/-.

My question is:
Whether I can adjust this Long Term Capital Gain of Rs. 30,00,000/- with the new residential flat I got registered in Feb-13, including both the Sale Deed amount and also the Construction Cost? Please note that I started paying for the new flat in installments from Jan-2011.

Thanks,

Best Regards,

P M Suresh

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