One of my client had purchased the under constructed residential Property for Rs 4.5 Crores. Client had executed the agreement for the same on July 10, 2018 and sum of Rs 3.0 Crores had been paid to the builder. Construction has been completed by November, 2019 and balance payment of Rs 1.5 crores is made in November, 2019 along with the OC.
In addition, Client had one more property in his name which he sold in October, 2019 for Rs 3.5 Crores [Indexed Cost of acquisition being Rs 1.5 Crores.] Hence Capital Gain is Rs 2.0 crores in the same.
Will the benefit of section 54 be available as the agreement for purchase of residential property has been done before one year; however part of the payment has been made within 1 year. Also construction of the property is done within 3 years of the sale of residential property.
What will be the amount capital Gain in the above scenario? (i) Rs 50.0 Lacs or (ii) Rs 2.0 Crores. Also provide reference in the Act or case Laws for the same, if any.