Query regarding capital gain reinvest

Gurinder Mohan Singh (Manager) (25 Points)

29 April 2017  

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.