10 November 2012
Assessee entered into an Agreement to buy a flat in a builder's Flat Scheme on 01.10.2009. The flat is pending allotment & the assessee is paying Installments to the builders as & when called upon. Now, if assessee want to sell this flat, what will be treatment as per IT Act? Will this be LTCG? Is it capital gain on sale of residential house or Right to own a residential house? If he further invests the proceeds in another Residential house, is exem u/s 54 available? Pls guide.
10 November 2012
This a very complex transaction In my opinion it is right to own a residential house and it will become a long term capital gain and if your assessee invests in new residential property then he can claim a benefit of section 54 F.
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