Ltcg on sale of a flat

House property is said to be a long-term capital asset if it is held for >36 months. Since you say the possession was taken in May 2015, you need to wait at least for 3 yrs since the date of possession (or registration) in order to avail exemption u/s 54.

Thanks. Can I avail tax benefit u/s 54F since under construction property was booked in Aug 2013 but possession was taken in May 2015! I am ready to invst full sale consideraion with buying of another residential flat in a year or so.

1. In order to avail exemption u/s 54F, you need to sell a long-term capital asset (not being house property) and buy a house property. Since this criteria (nature of asset and holding period of asset) is not satisfied, how do you intend to avail exemption benefit u/s 54F?
2. What I understand is, you may avail exemption u/s 54 provided your flat that you are proposing to sell becomes a long-term capital asset. Right now, it is a short-term capital asset (as 3 yrs not over since possession or registration, whichever is earlier).
3. I think you may do so after 3 yrs are completed (from May 2015).