Hi,
Wanted to understand the implications of sale of 2nd house. I have 2 house (flat)( 1 in which I stay and other in which brother stays). I would like to sell the 2nd house to brother and invest in a new place (underconstruction flat). QuestionsI i have is
1> Will i get exemption from capital gains if the amount(capital gain) is invested in the new underconstruction flat ?
2> The time period for 2 or 3 years given to utlize will be from date of sale of 2nd house ?
3> If sale deed date of new house is before the sale deed date of old house by less than 1 year will that also be eligible for capital gains exemption. In this scenario if the new house gets constructed by 3 years from sale is that ok.
Date of Purchase/Agreement of under construction flat : 1st Jun 2013
Date of Sale of 2nd house : 1st Dec 2013
Date of Possession of new house : 1st Dec 2015
In Summary trying to figure out the right combination to save on Capital Gains Tax.
CAclubindia
