Re-invest capital gains from sale of house property
S K Jain
(Querist) 15 January 2012
This query is : Resolved
Sir ! I have already purchased a flat for Rs.40Lacs in Bangalore in May 2011( Sale deed signed in April 2012 & Registry done on 09-05-2011).Now I am in the process of disposing my property in NCR Jointly owned by me and my wife. We have found a buyer and the sale deed for Rs. 1Cr is likely to be signed in Feb2012.But the buyer is insisting on registering the property only in mid June2012.
The Query is: –If Partial payment of Rs.40Lacs is obtained from the buyer on or before 08-05-2012 , can we claim Income Ta x Rebate on the Capital Gains being made as Rs. 40 Lacs being consided as reinvested in the property purchased at Bangalore within minus 1 Year? While rest of the Rs.60 Lacs we may or may not go for Income Tax Rebate by opening a capital Gains account to reinvest in future in another property purchase within next 24 months after the registry in June2012.
Regards
S K Jain
skjdel@rediffmail.com
Raj Kumar Makkad
(Expert) 15 January 2012
You can do so as the limitation is 3 years of the registration of sale deed which may be even prior to sale.
Deepak Nair
(Expert) 16 January 2012
Rightly advised by Mr.Rajkumar.
Thanks
soumitra basu
(Expert) 17 January 2012
Your capital asset is short term capital assset and as such you can not claim benefit from investment.
