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Capital gain exemption on Property sale

Tax planning 257 views 4 replies

Nanita T

4 Points Joined January 2021

I am currently living in a self owned flat. I also booked new under construction flat in 2016 for which I am going to get possession in 2022. My plan is to sell existing property in 2022 and move to new property.

Query1 - Can I claim capital gain exemption under section 54 on my old Property sale as I am selling old flat and taking possession/registering new flat in same year (although I have booked it in 2016)?

Query2 - Can I claim pre construction interest rebate on new flat?

Replies (4)

Aditya Bajaj

80 Points Joined February 2019

When are you doing registry of the flat

Smit Shah

524 Points Joined June 2020

You can claim interest paid in pre construction period once such flat is ready and construction certificate obtained and also you have registered it which revenue authority in your name

Nanita T

4 Points Joined January 2021

i plan to register new flat in 2022 but by booking date is 2016.

So which date would be considered for capital gain arising when I sell my old flat? Booking /allotment date or registry date?

Kapadia Pravin

17264 Points Joined December 2018

Any payment within 1 year before sale of old property or within three years from sale of old property as new one is constructed house, will qualify for benefit under section 54