Capital Gain
This query is : Resolved
26 April 2011
I booked a flat in 2005. I am likely to get possession in the next three months, but i want to sell it.
If i sell this pre possession, can it be understood that i am selling the right in the flat and not flat itself and since the right was held for more than 3 years,the gains arising from sale thereon is in the nature of longterm capital gain. I have paid 17.5 lacs till now and i sell for 30 lacs . Reinvestment of sale proceeds i.e. 30 lacs OR just profits i.e 12.5 lacs (??) into another residential property will qualify for tax exemption under section 54F.Can it be a 3rd or a 4th ready to move residential property?? or can it be aproperty under construction to be delivered within two year.
IS MY UNDERSTANDING CORRECT??? Can I take this benefit.
Selling post possession, i am clear that unless i sell after 3 years, the exemption cannot be taken.
If i sell this pre possession, can it be understood that i am selling the right in the flat and not flat itself and since the right was held for more than 3 years,the gains arising from sale thereon is in the nature of longterm capital gain. I have paid 17.5 lacs till now and i sell for 30 lacs . Reinvestment of sale proceeds i.e. 30 lacs OR just profits i.e 12.5 lacs (??) into another residential property will qualify for tax exemption under section 54F.Can it be a 3rd or a 4th ready to move residential property?? or can it be aproperty under construction to be delivered within two year.
IS MY UNDERSTANDING CORRECT??? Can I take this benefit.
Selling post possession, i am clear that unless i sell after 3 years, the exemption cannot be taken.
26 April 2011
1. 54F can be availed.
2. Post possession sale attracts short term capital gains since 36 months holding is not complied after taking possession.
2. Post possession sale attracts short term capital gains since 36 months holding is not complied after taking possession.
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