Long term capital gains sec 54

Mr.Jatin..

Your case will come under Sec.54..

1).  What is the deadline to purchase a new property to avoid LTCG tax ?

       The new Residential property should be purchased within 2 years from the date of Transfer (Since Capital Gains is invested in CGbonds within the due date of filing return).

2).  Do I have to re invest in residential or I can invest in Commercial?

      It should be invested in Residential House property.

3).  How many years I have to hold the new purchased property ( Is it from time of possession or from booking i.e allotment letter)

      The New Residential House should not be transferred within a period of 3 years form the date of its purchase. If transferred, then the exemption previously granted will be withdrawn. 

ITAT New Delhi in case of Praveen Gupta vs ACIT[137 TTJ 307] held that the allotment date of flat by builder is the date from which indexation is to be computed for the cost of acquisition. In other words , it held that the date of allotment is the date from which the period of holding is to be counted.

Thanks Balaji !!

Always Welcome Mr.Jatin...