Hi,
I had a query regarding Capital Gains exemption under Sec 54 in cases where property has been bought before the sale of land. Details are as follows
Sale of land : 27 Aug 2013 (attracting Long Term Capital Gains tax)
Purchase of under-construction flat : Booked the flat in July 2012. Made initial payments et al by 1st week of August 2012 Construction is still going on, I am still making payments to the builder based on payment schedule and possession is expected in March 2015.
I wanted to know if the "One year before" clause for claiming exemption under Sec 54 applies to this case. If the date of booking and first instalments are taken into consideration, then I just missed the date by a few weeks as sale was made in 4th week of Aug 2013 and date of booking was 1st week of August 2012..
On the other hand, I have made many instalment payments to builder in the period of 1 year (i.e. during aug 2012 to aug 2013) before sale of land.
Moreover, construction is to be completed in March 2015.
Please advise!
Regards,
Winnie
CAclubindia
