Flat booked two years prior to sale of old house

Dev 1
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Pankaj ji, it’s a great blog.

I am going to sell (execute registry in favour of buyer) of my NOIDA authority flat on 10.05.12 and LTCG of this flat are Rs. 20 lakhs.

Further, I had booked another flat costing Rs. 35 lakhs with a builder for which I have already paid Rs. 25 lakhs from 08.08.10 to 30.04.12 i.e. the payments to builder started approx 2 years before sale of my NOIDA authority flat. Possession of this builder flat will certainly be before two years of sale of my NOIDA authority’s flat.

Will I get LTCG considering the facts that I started paying to the builder two years before sale of my flat and how much exemption will be available to me.

Read more: http://www.pankajbatra.com/india/how-to-save-capital-gains-tax-ltcg-when-selling-land-plot/#ixzz1uH7yBB00

long-term-gains section-54 capital-gains income-tax
1 Answers

As long as you get possession for new flat between 11-05-2011 and 09-05-2014, you would be eligible for tax benefit.

New property cost is more than long term gains, so income tax would be zero.

Make sure to deposit unused gains into capital gain scheme account in case possession is not received before 31st July 2013 (last date of income tax return filing).

Pankaj Batra5212
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