Taxability of capital gain

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deepu (Querist)

15 June 2017 A and B sold a residential property in June 2015 and claimed deduction of Rs. 20.00 lakh u/s 54 by investing in a residential plot in August 2015.
Cost of plot purchased Rs. 100.00 lakh. Construction cost thereon is RS. 50.00 lakh from September, 2016 to june 2017. In june, 2017, they got the completion certificate thereon.
Now they want to sell the residential property floor-wise. Total floors are three. They are selling one floor for Rs. 85 lakh in October, 2017. Other floors will be sold in future as per convenience.
The points for consideration are : -
1. As the property purchased by availing deduction u/s 54 is sold within 3 years of purchase/construction, whether, the said Rs. 20 lakh would be deducted from the cost of acquisition for the new property.
2. As the one out of three floors are sold, Whether, total Rs. 20 lakh would be deducted from the cost of acquisition for the new property or only 1/3 would be deducted.
3. What will be the date of acquisition of new property i.e. August, 2015 alongwith construction cost as cost of improvement or June, 2017, as the new property (residential property) came into existence.
4. Is it possible to divide the sales consideration of Rs. 85 lakh in two parts i.e. one towards land and other for building constructed thereon. Thereby, claiming Long Term Capital Gain on sale of Land and treating the capital gain on building as short term.
5. Whether, the long term capital gain generated as above, is eligible for claiming benefits u/s 54 or 54EC or either of two.

Please provide relevant case laws

Amol S Joglekar

Amol S Joglekar (Expert)

15 June 2017 please elabrate the first sentence........A and B sold......were they joint owners......???????
claimed deduction of 20 lakh....... each claimed or jointly claimed?
why claimed only 20 when the plot cost is 100?

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