Long term capital gain and under construction property

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Pramod Mishra (Querist)

11 May 2013 I have already booked an under construction Villa at Bangalore (agreement date with builder 30-Apr-2013) from a builder with a loan from bank and registrations is likely to happen around 30-Oct-2014. Also I have 4 year old flat at Hyderabad which I would like to sell. My flat at Hyderabad will be five years old on 25th July 2014. Which date I need to sell my Hyderabad flat so that long term capital gain is not taxable?

In some article it says one need to invest long term capital gain in fully developed residential house for long term capital gain tax exemption. Also let me know if under construction house (2nd property) will qualify long term capital exemption when first property is sold within one year of second property agreement date?

Pramod Mishra

Pramod Mishra (Querist)

01 June 2013 Any body can answer my above question ?

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)

26 June 2013 As regards act is concerned it is all right but there are several judgement which says that once you have paid the money to the builder it is to be treated as investment and the provisions of section 54F will be applicable and exemption will be allowed.

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