Long term capital gain on sale of flat

This query is : Resolved

Vishnu Goenka (Querist)
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18 June 2015 Dear All,

Please answer my query,

One of my client purchased a Flat on 21.07.11 for Rs. 14 Lakhs and Registry cost was Rs.55000/- , hence total cost was Rs.14,55,000/- .He sold the same Flat on 10.03.15 for Rs 22 Lakhs.

He had purchased another Flat on 22.08.13 for Rs. 40 Lakhs. The registry of new Flat has not been done but agreement has been executed on 22.08.13. Now my query is

1.Whether he is liable for Capital Gain(LTCG)

2.If yes, how can he escape LTCG.

3.Whether he can invest sale proceeds in Govt. notified scheme to avoid capital gain tax

Thanks
Anjila Goenka

CA. Sunil Gokhale

CA. Sunil Gokhale (Expert)
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18 June 2015 LTCG is just over Rs.3 lakhs. He can invest Rs.3.05 lakhs in capital gains bonds issued by National Highways Authority of India (NHAI) Ltd. or Rural Electrification Corporation (REC) Ltd. with six months from sale of flat, i.e. 10.3.2015 to avail full exemption under Sec. 54EC from capital gain.