capital gain on sale of plot where installments were paid during number of years, Income Tax

[Rahul Bagaria]

Hi I have a query : OLD PLOT - Total Cost - Rs. 19.2 Lacs Bought in Dec 2002 Paid for in installments over 6 years Possession in April 2006 Sold in Dec 2009 for Rs. 60 Lacs NEW PLOT - Total Cost - Rs. 98 Lacs Bought in Dec 2009 FLAT - Total Cost - Rs. 40.2 Lacs Booked in August 2008 Allotment Letter issued in Sept 2008 Full payment made to builder in Sept 2008 Agreement signed with builder in Feb 2009 The issues are: Will the flat be treated as 'SECOND HOUSE' in case I build a house on the new plot? If the flat is a second house, will I be ineligible for relief under Sec. 54(F) on long term capital gains if I construct a house on the new plot? In a situation where I want to offset the gains against the flat (and ignore the new plot), will it qualify? The doubt is because the 'ALLOTMENT LETTER' for the flat was issued in Sept. 2008 and this is before the one year period of the old plot being sold in Dec 2009.

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[GOPALJI AGRAWAL]

Dear Rahul, Your query needs various other facts hence may not be opined under the forum.