capital gain tax exemption
Querist :
Anonymous
(Querist) 07 June 2011
This query is : Resolved
sir, i have sale my dda residential flat in 2011 , now i want purchased a land . but according to my knowledge for capital gain exemption purpose i have to invest in residential house or flat not commercial and land.
but the confusion is that land which i am going to purchase has temporary constructed and electricity meter permanent has also taken and this house is freehold property.
so according to law , how to recognized this property residential house or land. and i will be eligible for capital gain exemption or not.
sanjeev murthy desai
(Expert) 08 June 2011
You just check all the documents with respect to the such building including building license, sanction plans, commencement certificates or occupancy certificate and etc.
I think DDA has master plan on dda jurisdiction, if such property comes under residential jurisdiction, then need not to worry, you can invest directly because you may eligible for capital gain exemption.
Querist :
Anonymous
(Querist) 08 June 2011
thank sanjeev ji for your attention. i want to clear that also it is residential land not commercial land.but no one can live on just land so i think we cannot treat this land as residential property. but the confusion is the concept . for ex when dda allot the plot\ land to a person. but people are not interested in live there. so they don't start construction for a long period.
but when dda notice came to start construction immediately then they make small temporary hut type of cost around rs 50000 to keep dda mouth shut up and get freehold. so what it makes it residential house or it will treat as residential land.
R.Ramachandran
(Expert) 08 June 2011
Dear Anonymous,
If it is a residential house and constructed according to approved plans, then the seller would be having a Completion Certificate as well.
I am afraid, in the fact situation narrated by you, this does not appear to be the case.
