To save long term captial gain

Originally posted by : Akash
	Scenario: I purchased my first house in Dec 2006 for X amount.  Assuming its indexed cost is 12 lacs now in 2012. I plan to sell in April 2012 for 45 lacs.  Therefore the capital gain would be 33 lacs.  This house is on rent as I stay with my parents. In 2010, I booked my 2nd flat with a builder for 26 lacs on construction linked plan by taking a housing loan of 22 lacs, I would get possession in Dec 2012.  So, far I have paid 18 lacs to the builder (16 from the bank).  The entire amount would be paid to the builder by the bank by Dec 2012. Questions: 1. Do I still have to invest entire amount of 33 lacs (capital gain from the 1st house) or can I just invest 7 lacs (33-26) as I will be getting the possession of the 2nd house in in the year in which I am selling the 1st house.  2. Little confused if the date of booking will hold good or the date of possession. 3. Also, if my parents also transfer their house in my name by way of gift deed in Mar 2012, would that make any difference to the above scenario. Thanks Akash

(2) The amount of the capital gain which is not appropriated by the assessee towards the purchase of the new asset made within one year before the date on which the transfer of the original asset took place, or which is not utilised by him for the purchase or construction of the new asset before the date of furnishing the return of income under section 139 786 , shall be deposited by him before furnishing such return [such deposit being made in any case not later than the due date applicable in the case of the assessee for furnishing the return of income under sub-section (1) of section 139 in an account in any such bank or institution as may be specified in, and utilised in accordance with, any scheme 787 which the Central Government may, by notification in the Official Gazette, frame in this behalf and such return shall be accompanied by proof of such deposit; and, for the purposes of sub-section (1), the amount, if any, already utilised by the assessee for the purchase or construction of the new asset together with the amount so deposited shall be deemed to be the cost of the new asset :

https://www.vakilno1.com/bareacts/incometaxact/s54.htm

Another question:

1. What if the assess books a land to build a house on Feb 2012 and sells a residential house with a cap gain of 33 lakhs.  Since the land has been booked with a builder who will take payment in 8 payments in two years and then give a posession, does that take care of Captial gain saving if the builder delivers within 2 yrs and then assessee constructs a house in another year.

2. What if the assesse in the above example books a flat with a builder which is to be delivered in 3 yrs and pays from the CGtax account, whenever builder demands.  If the builder delays the possession and hence the property doesnot get registered by the end of 3rd year, what happens in this case?

3. If the assesse has another house in his own name other than the one sold and the new one to be purchased.  Does the number of residential house matter.

Thanks