Availing Capital gain exemption while purchasing new flat

Planning to sell 2 properties , plot(owned by my wife) and flat(Jt ownership) to purchase a new flat which is under construction.

Both these properties will be sold at different timelines. Say plot will be sold in next 2 months and flat will be sold after 2 years from now.

Build has told us that he will give us possession in 3 years as per agreement which he will be doing.

Can I take benefit of capital gain exemption for both the properties which I am selling at different timelines?

By selling 2 properties if I get surplus amount can I invest them partially in NHAI bonds as specified? Is it applicable for plot and flat both?

By when I can say the transaction of purchase of new property is valid for tax exemption or complete when I sell old property.? As many builders do not do sale deed.

Any help or guideline on these queries would be highly useful.

1. Capital Gain Exemption for Multiple Properties: You can claim capital gain exemption for both the plot and flat if you fulfill the conditions specified under Section 54 and Section 54F of the Income Tax Act, respectively. The exemptions are available when you invest the sale proceeds in a new residential property. The timelines and conditions mentioned earlier apply to each property individually.

2. Investment in NHAI Bonds: As of now, investment in NHAI bonds does not qualify for tax exemption under Section 54 or Section 54F. The eligible investments for tax exemption are specified under Section 80C of the Income Tax Act, such as PPF, NSC, ELSS, etc.

3. Applicability of Exemption to Plot and Flat: The capital gain exemption can be claimed for both the plot and the flat, provided you meet the respective conditions mentioned earlier. The type of property being sold (residential or non-residential) determines the applicable section for exemption.

4. Transaction of Purchase of New Property: To claim tax exemption, the purchase of the new property should be completed within the specified timelines mentioned earlier. The exemption is based on reinvesting the sale proceeds in a new property. Ensure that you have proper documentation and registration of the new property to establish the transaction's validity.

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