long term capital gain on house property

Dear Sir, I have sold my residential flat in august 2015. I have computed 30 lacs capital gain. I booked a residential flat in 2004 and made payments till march 2014 and received possession of flat in April 2014. But the registration of the flat is still pending by the builder. I hope the registration of the flat will be over within a week. Now my question is whether can i take exemption of capital gain against this flat. If yes then if i gift this flat without taking any consideration to my sister within 3 years of taking exemption will i be liable to pay tax.

asked Aug 09 '15 at 17:45 by ritesh071 1378

(Aug 12 '15 at 08:32) ritesh071

Section 54 Exemption for residential house

LTCG(Long term capital gain) on transfer of residential house shall be exempt if the amt. of capital Gains is utilised for purchase/construction of new residential house within the following time limit.

TIME LIMIT The new house should be purchased within 1 year before the date of transfer or 2 years after date of transfer or it should be constructed within 3 years of transfer.

SCHEME OF DEPOSIT If the new asset is not acquired upto the due date of filing return then the assessee should deposit the desired amount in a special account opened in accordance with capital Gains accounts Scheme, 1988. The deposit amt. is not utilised then the exemption allowed shall be withdrawn.

AMT OF EXEMPTION 1) Amt. of only Long term Capital Gains 2) Cost of New Asset/Amt. deposited LOCK IN PERIOD The new asset should not be transferred within 3 years from the date of its purchase. If the new asset is transferred within 3 years then the exemption will be withdrawn.


answered Aug 23 '15 at 22:13 by Yash M Jhaveri 611


As per rules, possession has to be taken within one year before sale of asset or within two years after sale.

In your case possession was taken before one year of sale, so it may not be applicable.

New asset should not be transferred for next 3 years in order to receive tax exemption.

answered Aug 15 '15 at 07:05 by Pankaj Batra 5.2k320


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Asked: Aug 09 '15 at 17:45

Seen: 2,228 times

Last updated: Aug 23 '15 at 22:13