Hi All,
One of my colleagues is having one query, so we would like to have your opinion on the below query:
He had two house sites, in two different cities. Site A in Bangalore and Site B in Chennai.
He disposed of the property B at Chennai 3 yrs back and purchased a site and constructed the house (Property C) in Bangalore, wherein he utilized the Capital Gains, arose out of Property B.
Now, he wants to dispose property A, (vacant residential site at Bangalore) and wants to use the sales proceeds, for further developing the property C (at Bangalore).
So his query is whether, the capital gains that will arise, on proposed sale of property A, can be set-off by investing / developing property C.
Your valuable feedbacks will be solicited.
Thanks & Regards,
Manish Saboo
CAclubindia
