I had two residential land property out of which I have sold one within last one year and used the full sale value to purchase a residential property from a builder which is of the nature, land + construction. The value of the residential property is double and I had taken a home loan to proceed with purchase / construction from the builder which will be completed/handedover over in couple of months time from now.
Now to reduce / come out of the loan burden, I would like to sell the other residential land property also and pay the loan amount. I have two clarifications in this regard that would help take a decision,
1) Can two residential land property sold be invested in one residential house we have bought and exemption claimed under Capital Gain Act 54 / 54 F ?
2) if yes for above, in our case (i.e, buying a land + construction from a builder), Can I sell the second property later (even after builder handover in couple of months from now), say within 6 months or so and claim the exemption ? i.e,.till what timeframe can we sell the second property and claim ?
(additional note: we have one another residential home bought/constructed 3+ yrs before, will there be any implications in this regard ?)
Thanks in advance for the help / clarification.
CAclubindia
