Akash (SE) (28 Points)
26 November 2012I have sold a property now and want to buy a under construction flat.
So to save Capital Gain tax what is the time limit within which my flat should be constructed and what documents I need to show in support of Showing Possession of the flat ( for example Possession letter, Completion Certificate, Registary of the flat)?
Giridhar S Karandikar
(Team Lead)
(7543 Points)
Replied 26 November 2012
The flat should be constructed within a period of 3 years from the date of transfer. If the same is not constructed within 3 years from the date of sale and the CG remains unutilized on or before the due date of filing teh return of incoem, then you ahve to deposit the unutilised CG in the Capital Gains Accounts Deposit Scheme. The receipt given by the bank would be sufficient evidence for claiming exemption from CG for that eyar.
However after completion of the flat, the copy of the Sale Deed should be sufficient evidence for claiming exemption u/s 54 after 3 years.
CAclubindia
