Application of long term capital gains tax on sale of proper

Compute the long term capital gain. You are required to invest only that amount to save tax and not the whole sale proceeds. You can invest u/s 54 in another property within 2 years or construct within 3 years or invest in infra bonds within 6 months. 

For Calculation of Capital Gains Under income Tax Act,1961- You need to Take 'Sale Deed Date' as a base, Not the Registration Date.

Say for Example You entered Sale Deed & Sale is Concluded (I.e Deed is Signed) on March 31,2013 But the Deed is Registered on April 10,2014.  Then Capital Gains are Taxable in the Financial year 2012-13 Only, I.e Based on Deed Date.

Because for Calculation of Capital Gains under Section 45 of Income Tax Act,1961- First there should be a 'Transfer' The Term Transfer is Defined in Section 2(47) of Income tax.And the Subclause (1) of 2(47) Defines Transfer as 'Sale, Exchange or Relinquishment of Rights'.  

Your Case Falls in 'Sale'.  Hence the Condition of Transfer as defined in Section 2(47) is Satisfied in year 2012-13 in above example. The Capital Gains will araise based on Sale Deed.

You Can refer Section 2(47) on this Link: https://www.exploreincometax.com/Indian-Income-tax-Act-1961/Section-2-47

Also Refer the 'Section Analysis' Given on Section 45 on this Link: https://www.exploreincometax.com/Indian-Income-tax-Act-1961/Section-45

Secondly For Claiming Deduction Under 54, You need Not Produce any Documents, Only You just need to Show the Investment in Section 54 In Income Tax Return. If the Assessing Officer asks you the Proof, then You need to Visit the Income Tax Office, as per Your Jurisdiction, And You need to Produce the Documents before Assessing Officer for Verification.

Refer Section Analaysis on Section 54 on this Link: https://www.exploreincometax.com/Indian-Income-tax-Act-1961/Section-54