Dear friends,
A & B were allotted a residential plot in February 2007. (registry still not done). They sell the plot in May 2010 for an amount of Rs. 1 crore.
How should they proceed further in order to avoid LTCG ?
Suppose A&B decide to purchase a residential plot costing Rs. 1 crore (in joint names). Whether they would be still liable to LTCG or they will have to do construction on the plot within three years?
If construction is a must to save LTCG, then how much construction?
Since the entire sale consideration has already been invested in the cost of the plot, whether A or B can do construction from his own funds?
please reply accordingly to the above questions.
thanks in advance
manish