Hi,
I have long term capital gains from unlisted shares that I want to utilise against exemption under section 54F for residential property investment. Sharing current facts below first -
1. Date of capital gain - 1-Sep-2018
2. Current city - Gurgaon
3. Existing property investment
a. 3 year old investment in Maharashtra - possession taken, property registered under my name, but not rented
b. 4 year old investment in Haryana - possession still not taken. property not yet registered under my name. EMIs being paid from my account
4. New property investment (planned) - Gurgaon - Want to buy it in next 2 months
Problem statement: I want to invest in a new property as per Point 4 and claim exemption on it under 54F. However, 54F allows only one existing property.
Q1. Can we claim exemption on new property by excluding 3B since the possession/registration for 3B hasnt even been taken yet?
Q2. If answer to Q1 is yes, what do I do with 3B for now? Should I sell it to someone without possession/registration and have the sale proceeds transferred to say my father's account instead? Or should I drag 3B for couple of more years without taking possession?
Q3. If answer to Q1 is no, I also have a gift deed with my dad where I have gifted 3B to him few months ago. However, the registration formalities havent been completed yet. Even if I register NOW (post receipt of LTCG money), can i exclude 3B from list of existing properties and claim exemption on new investment?
Any help would be appreciated. This entire topic is too messy for anyone to give me a clear answer. Hope someone can help from this forum.
CAclubindia
