Mr. X sold his house on 05/03/2024, generating a capital gain of ₹20 lakhs. He then invested ₹40 lakhs in an under-construction residential flat (Flat A) in March 2024, claiming a capital gain exemption. As of today, the new property is still under construction. He is now interested in another residential project (Project B) and plans to sell his under-construction Flat A.
1) What will be the tax implications in the case of the sale of an under-construction flat A?
2) Will his previous capital gain exemption of Rs. 20 lakhs be revoked? Will that be treated as income for FY 2024-25, chargeable to tax at the slab rate?
3) Will this flat in the new project B be eligible for a claiming period of three years for under-construction property?