I sold my flat purchased in 1993 in 2012 for 68L and using the proceeds booked a new flat in 2012 for 130 L which will be handed over in March 2015.I have adjusted 68 L in 130 L and avoided capital gains tax. I am proposing to sell a plot of land bought for 12 L in 2008 for 35 L in April 2015. Can I adjust the capital gains arising out of selling the plot against the purchase of new flat in addition to the already adjusted capital gains which arose by selling my old flat. I have availed loan for the balance portion beyond 68L for purchase of new flat. I do not have any other residential house or flat in my name.
1 Answers
First, as per section 54 rules, possession of new flat should be taken within two years from sale. If you are getting possession after two years, that should not make you eligible for tax benefit.
Another thing, did you open capital gain scheme account before 31st July 2012 (in case flat was sold before 31st march 2012)? If not, this would also make you ineligible for tax benefit.
Yes, you can take tax benefit u/s 54F for plot sale as sale consideration is less than new flat purchase cost.
Pl note the following 1)Old flat was sold for 68L with capital gains of 32 L in Feb 2013
2)The new flat under construction was booked in Feb 2013 for 125 L and the entire sale proceeds of 68L(including capital gains)was reinvested in the new flat in Feb 2013 itself and therefore capital gain account was not opened. 30 L housing loan from SBI has been taken to fund a portion of the balance requirement.
3)The above transactions have been incorporated in the IT return filed for 2012-13 and agreed by IT as well.
4)The new flat is a construction activity and is expected to be completed by April 2015 and my auditor informed that for construction the time available is 3 years and therefore till Feb 2016 we can adjust capital gains in the New flat.
4)The plot is proposed to be sold in April 2015 with a capital gain of 13L and now I want to adjust the capital gain of 13L by repaying the SBI loan thereby adjusting this amount in the investment made in the new flat. Please clarify whether it is in order.
You can adjust both capital gains against a single purchase, there is no issue in that.
Even if you repay loan amount from new sale consideration, tax benefit can be taken u/s 54f.
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