1. October 2018 I have booked a New Flat in a Project in pre-launch phase (yet to be started construction at ground), with estimated possession in Oct 2021.
2. The project cost is 60 Lakh out of which 10% I have paid at booking (that is 6 Lakh), and 90% through Home Loan (subvention scheme). Due to subvention loan, I am not allowed to per-pay loan until possession of the flat (which is Oct 2021).
3. I have an Old flat (purchased 10 years ago) in another city where I expect to get 50 Lakh sales price with LTCG of approximately 30 Lakh. I have not yet initiated Sale for this property.
As far as I understand the Section 54, I need to sale my Old Flat by Oct 2019 because the New Flat booked in Oct 2018. Assume that I sale my Old Flat in June 2019. Now, in June 2019 I will arise LTCG of 30 Lakh from this sale but cannot repay that against Home Loan I have taken for New Flat until the possession of the New Flat in Oct 2021, becasue of subvention Loan Scheme policy. Can I still offset LTCG against my Home Loan by prepaying my Home Loan in Oct 2021 (after Old Flat sold in June 2019)? Or I should not sale the Old Flat rightn ow and then sale that one just little before I get possession of my New Flat in Oct 2021 so that to offset the LTCG arising?
CAclubindia
