I became a member of housing society in 2009 for a house. To fund the construction, I sold my plot in 2009-10 with capital gain of 21 lakhs without indexation. However, since requisite clearances were not available, the entire amount was deposited in capital gain account. Since construction could not start even by end of FY 2011-12, I invested the proceeds plus four lakhs savings for partial down payment for booking a flat from reputed developer in March 11-12. Construction is yet to start by developer. Meanwhile, the housing society clearances have been received in December 13 and construction has started. Now to fund this construction I plan to dispose of the flat booked with the developer which is expected to be disposed off for Rs. 30 lakhs. How the capital gain has to be treated for tax purposes? i.e. original CG of 21 lakhs and expected new CG of 5 lakh (less than 3 years). What if the builder flat is disposed off in April 2014?
CAclubindia
