Deferring capital gains from sale of residential property

Gopi (Engineer) (123 Points)

28 June 2022  

I am selling a residential plot, purchased in 2000. I would like to use this sale proceeds to

construct a house on a different plot that I already own.

However the cost of construction is much more than the sale of my residential plot.

Can I defer the capital gains on the sale, if I use 100% of the sale proceeds in constructing a house?

If so, what's the process for this?