Proof of investing in residential property

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Dear Pankaj Ji

I have an old residential house which I am now planning to sell. To avoid LTCG, I plan to invest in a residential property. I have identified a residential plot, the value of the same is more than the proceeds of the earlier house. I do intend to construct a house on this within 3 years of registration of the earlier property which I have sold. What documentary evidence/proof do I need to submit to Income Tax department to substantiate my claim that I have indeed invested in residential property within 3 years to claim benefits u/s 54

income-tax-return residential-property long-term-gains section-54
1 Answers

There is no document/proof required to be submitted along with income tax return. While assessing your returns, in case income tax department/assessing officer has doubts on your declaration, they may send you notice to show proofs (registration deed, completion certificate etc.)

In case completion of new property is not completed before last date of income tax return filing (31st July) for the year in which gains happened, you would need to open capital gain scheme account and deposit capital gain into this.

Pankaj Batra5212
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