Query regarding capital gain reinvest

Tax queries 156 views 2 replies

Pl. note that I have sold a residential plot which is jointly owned with my wife. We both are working & tax payers.

Last  year we jointly purchased a Flat and we have to pay the instalments for next 3 years. As per Section 54F one can invest in property which have purchased 1 year before. We want to invest  our long term capital gain of  plot by paying instalments of our Flat to save tax on capital gain.

My query is: for calculating 1 year which is considered either Allotment letter of flat or Buyer-seller agreement.

(Because our Flat allotment letter is more than 1 year old but buyer-seller agreement is less than 1 year old. We are not eligible as per allotment letter.)

Please advise.

 

Replies (2)

You can avail exemption u/s. 54F, based on possession of flat if received within 3 years from date of sale of your plot!!!

yes you can avail 54 F deduction subject to the conditions that you should not own more than one property (excluding the new flat purchased )at the time of sale and the new flat should be purchased either 1 year before or within 2 years from the date of sale


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