Long term capital gains

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If i invest long term capital gains from sale of flat & all amount of sale price of plot of land for purchase of flat in under construction building & builder promises to hand over possession in 3 years from sale of this flat & plot,(Purchase price is more than capital gains of flat plus sale price of plot of land ) will i get tax exemption.

What if builder does not give possesssion in 3 years even though i have paid him more than capital gains of flat & sale price of plot of land.

I  have  one more flat at the time of sale of this flat.

 

Replies (1)

It is assumed that two assets are sold, one flat and one plot of land

Yes you can invest in another Flat which is under construction by builder and to be completed within 3 years as under:

under Section 54 for sale of residential flat.

Under Section 54F for sale of plot of land

It does not matter that both slae proceeds are invested in the same flat if the cost of new flat is more that the total of both sale proceeds.

Ensure that the builder hands over possession within 3 years and also execute a agreement to build with the builder.

 


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