Long Term Capital Gains, Income Tax

[Ramesh M]

I will get a Long Term Capital Gain of around 1 Crore on selling property A now.

 

I booked an under-construction property B on April 2012. Agreement value is just above 1Crore. Construction started on June 2012. Registration was done on June 2014. Construction is almost over now. I’m yet to get the keys and possession letter. I have made 90% payment.

 

As per my understanding, according to Section 54, to claim exemption from Long Term Capital Gain Tax,

1. A new residential property must be purchased either 1 year before the sale or within 2 years after the sale of the property/asset.
2. Or the new residential house property must be constructed within 3 years of sale of the property/asset

Can I claim exemption from sale of property A, if I sell it now and get possession of property B in the next two months?

 

Please advise.

 

Regards,

Ramesh

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

Whether my presumption is correct? You are in possession of property A which is going to be sold by you. You want to claim exemptions from capital gains tax by getting the possession of property which has been booked prior to the sales of A?