Lon term capital gain on selling first house

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 April 2013 I have four years old flat at Bhubaneswar, Orissa. I am planning to book a under construction villa jointly with my wife at Bangalore, with a home loan from a Bank. I would like to sell my Bhubaneswar flat and invest the capital gain for my under construction villa at Bangalore. Bhubaneswar flat is in my name, but Villa at Bangalore will be booked by both – me and my wife. Wife is not working and she has no income. Please clarify below.

1. If I sell my Bhubaneswar flat which is in my name, can I use the capital gain in my under construction villa (me and my wife) at Bangalore ?

2. Bangalore villa will be booked around May-2013 and most probably I will get the passion by Jan-2015. Agreement with builders will happen in June-2013 and villa registration with sale deed towards Oct/Nov-2014. Please let me know the time frame for selling my Bhubaneswar flat so that capital gain is not taxable.

3. While computing the capital or loss, which date one should consider- Agreement date with builders / actual registration date through sale deed / Possession date of first house?

4. From income tax point of view, what other things need to be considered while selling my Bhubaneswar flat. Particularly 80C charged for last couple of years will be taxable?

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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01 July 2013 Entire amount of your Bhubneswar flat has to be invested and you can get the benefit u/s 54F but you should read the provisions of section 54F($) which speaks about the manner in which you have to apply the capital gains. Your wife can be the joint owner but without investment she cannot be joint owner. You should also read the provisions of section 54 also