Charanjit Sahni (Manager) (25 Points)
07 September 2019I sold a resi. Property in June 2017 and reinvested all the amount in purchasing a resi. Property in July 2017 And no capital gain Tax was paid availling exemption allowed.
Now am I allowed to sell that property now after 2 years Lock in period OR 3Years Locking period..??????
Please reply.....
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 07 September 2019
1. As per sec 54 exemption can be claimed from investments made in a new residential property if the purchase is made within 2 years or in case of construction within a period of 3 years.
2. However, the above exemption shall be nullified if the same residential property is sold within a period of 3 years from the date of investments. The cost will be taken as nil if the entire investment is claimed as exemption u/s 54.
3. In your case, if the residential property is sold within a period 3 years from the date sale that is within July 2020, then if the entire amount claimed earlier will be deducted from the cost of acquisition.
Please correct me if the above solution has an alternative view.
CA. Atul Pithadia
(Chartered Accountant)
(60 Points)
Replied 07 September 2019
Lock in period is 3 years u/s 54
Kapadia Pravin
(17264 Points)
Replied 07 September 2019
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