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Capital gain exemption on Property sale

04 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?

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4 Replies

Aditya Bajaj (80 Points)
Replied 04 January 2021

When are you doing registry of the flat

Smit Shah (524 Points)
Replied 05 January 2021

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)
Replied 05 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 (17249 Points)
Replied 08 January 2021

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