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Capital gain tax on property

neeraj (vp) (28 Points)

26 June 2012

all

i sold a land in gurgaon which was bought 20 years back in sept 2011. can i adjust capital gain from this against a flat which i started paying for instalments in 2008. Now in july 2012 i am getting posession of this new flat

adding .. few more details

New apartment i have bought was under construction so i have been paying instalments under the construction linked plan since 2008. this month only construction is finishing and i will be paying the final amount and getting posession.

what is the criterion for date of purchase of a flat for purpose of section 54

- day you sign agreement and start paying installment or day you get posession or date of registry. almost no new project gets finished in 3 year here in gurgaon ...

thanks

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9 Replies

pavan joshi (none) (63 Points)
Replied 26 June 2012

yes u can do that as per sec54 of income tax act 1961...

Deepak Parsai (Future CA) (623 Points)
Replied 26 June 2012

Agree with pawan. Since you have bought new house within 1 year, you can take benefit.

Mahavir (Student) (161 Points)
Replied 26 June 2012

No you cannot as you have bought the new house before selling the old one..

lokesh (article) (22 Points)
Replied 26 June 2012

agree with mahavir

Raman Aggarwal (Expert) (363 Points)
Replied 26 June 2012

Exemption is only valid u/s 54 if

purchase a residential house within year before the date of transfer of old house or within two year after the date of transfer of old house.or
construct a house with in three year from date of transfer of old house property.

So in this case exemption is not allowed

Akshay (article) (25 Points)
Replied 26 June 2012

but what is the date of sale deed of new one

its all depend upon sale deed in this circumstance...

CA Prateek Garg (Consultant) (149 Points)
Replied 26 June 2012

Agree with Raman sir,

I think flat is bought and not constructed and since the flat was bought before 1yr so u cant take benefit of sec. 54. It is irrelevant that you take possession of house in 2012 after sale.

neeraj (vp) (28 Points)
Replied 26 June 2012

thanks for reply .. few more details

what is the criterion for date of purchase of a flat for purpose of section 54

- day you sign agreement and start paying installment or day you get posession or date of registry. almost no new project gets finished in 3 year here in gurgaon ...

Akshay (article) (25 Points)
Replied 27 June 2012

the assessee will be entitled to exemption under sec 54 if the substantial domain and control over the NEW property had passed within the period of two years from the date of sale of house though possession was given later...