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Capital gain on land sale

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raja2k5

21 Points Posted on 14 July 2015

Hello all, I am new to the forum and have one query.

I purchased one house on 18-June-2014 but got the possession on 3-Aug-2014. Now I sold one of my other land on 1-Jul-2015. Can I adjust the capital gain from land sale with the house purchased last year as the rule says; I can adjust if the property is purchased within 1 year of the land sale? But here the property was purchased 1 year 12 days before the land sale but I got the possession on 3rd Aug 2014 which is within 1 year of my land sale. I also have the possession certificate from builder to prove the possession date. The house was purchased on loan and I am planning to pay off some of the loan with the amount I got from my land sale.

Please suggest if the capital gain from land sale can be adjusted with the house purchased.

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Z

Tax Consultation (US and India)

2348 Points Posted on 14 July 2015

Would like to know your jusrisdiction [State , City] (Most important)

How you determined the date of purchase?

When was the payment made?

When was the agreement to sale entered?

What is the date of registeration ?

Date of allotment letter (if flats)

Under section 54 and 54F words used are "purchased" hence it should be construed as per General position in law , in which we have Transfer of Property Act , Specific Relief Act (Since agreement to sale creates a vested right for specific performance u/s10 of the Specific Relief Act, 1963)