Hello Pankaj, My father owns a plot allotted to him in 1990 at a cost of 1.5lacs(A) I own a house bought at 13lacs in 2001 in which my father is residing.(B) I also own a plot bought at 40lacs in 2008.(C)
Now my father wants to gift the plot (A) to me and i want to sell the plot(A) immediately to construct my own house on plot(C). The estimated sale price for plot A is 45lacs and i plan to fully invest it for constructing my house on plot C. In return i am gifting house(B) to my father where he will continue to stay.
My understanding is that since the gift of plot A to me is from father to son, the sale of plot A by me can be considered as long term capital gain. So i could claim exemption of captial gain from this transaction since i am investing it back to construction of my own residential house. Is this correct? Are there any procedure to be followed?
Appreciate your advise.