Capital Gains:

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Gopi Gundelli (Querist)

10 June 2009 Dear Expert,

An individual Mr.X has invested money got from sale of his long term capital assets (capital gains) in buying of a flat with in 6 months and entered into a agreement of sale with the developer.
a. In case Mr.X, registers the flat in semi-finished stage & enters into a separate construction agreement with developer with in two years can he eligible to claim benefit of capital gains tax.

b. If yes does Mr. X needs to give any other proof than registered document.

c. For taking benefit of capital gains under purchase option, completion of flat & occupancy certificate is necessary.

Regards,
Gopi

Parveen Bansal

Parveen Bansal (Expert)

11 June 2009 Completion and occupancy certificates will prove that it is residential house.

Purchase / construction has to be completed within specified period.

It will not work.

Aditya Maheshwari

Aditya Maheshwari (Expert)

11 June 2009 If the flat is not completed or full payment is not made then he will have to deposit the balance amount in capital gain account with any nationalised bank and withdraw as and when payment is made. The house should be completely constructed within 3 years

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