Ltcg on sale of land

Please find below my replies

1. Can they take advance in installments from the buyer now and conclude the deal in November/December 2014 to claim Long Term Capital Gains of Sale of Land ?  

Madav : Definition of sale is not defined in the Income tax act , hence typically court gets shelter of  sec 54 of transfer of property act to determine the sale date, this section has two methods of determining sale date, one for registered conveyance deed and other for not registered conveyance deed. In the cases where conveyance deed is going to get registered , sale does not take place by mere transfer or possession of capital asset. Transfer takes place on the date when conveyance deed gets registered transfer takes place on the day of execution of document. Considering the sale deed (conveyance deed) is going to be registered in Nov/Dec 2014, the said client will be qualified for LTCG.

Take advance does not impact above explanation and sale will only be concluded in Nov/Dec 2014.

2. My client had also booked an apartment with a Builder in 2007-08 which is under construction the possession of which is expected in June/July 2014.   3. Can his 2 sons buy this apartment (50% each) from him against the sale of this land and claim exemption U/s 54F. Also can he sell this apartment to his sons at indexed cost from the date of allotment / builder buyer agreement since the possession has not been handed over as yet and claim exemption on this property as well.

Yes, his sons can claim the benefit of section 54F on their share of capital gain,

Client can also take the benefit of indexed cost to reduce its capital gain

Read more at: /forum/ltcg-on-sale-of-land-287964.asp#.U29tp4FdV-5

The owners of a piece of land are 5, your client, wife, two sons and huf. The sale of land will attract LTCG on all 5 owners.