Ltcg exemption under sec 54

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Milind (Querist)
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25 April 2013 I had the following queries on the exemption of LTCG under sec 54

1. Is buying a flat from builder considered construction of own house (which is given 3 years period) ?

2. Do we need to take physical possession along with the possession letter from builder/seller WITHIN the 2 year period or just doing an registered agreement of an under construction project within the 2 years is fine (possession taken later on when the building is completed)

Also for closure of CG account with bank do you need any other documents to submiiteed alongwith FORM G ?

shabbar

shabbar (Expert)
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27 April 2013 dear Milind

It is okay if you buy a flat from the builder but it will be completed or ready to take possession within three year but for claiming exemption either you have to pay the amount to the builder or get it deposit into the bank CG a/c before due date u/s 139(1)

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Milind

Milind (Querist)
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27 April 2013 Thanks, But i am still not clear. I have sold flat in Oct2011 and deposited the capital gains in Capital gains account in a govt bank. Now can i utilise this amount to buy "residential flat" by Oct2013 or Oct2014? Is the 3 year limit applicable for residential flat bought from builder or resale flat?
Also is it enought to do sale deed or possession letter is mandatory within the time period?

shabbar

shabbar (Expert)
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27 April 2013 3 year limit from the date of sale and sale deed is enough to claime the exemption

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