capital gain tax exemption on property

Querist : Anonymous (Querist) 11 May 2011 This query is : Resolved
Sir,
i have sold my present property and want to book in a new launching project which is to hand over possession in end of 2014 will i be charged capital gain tax or if i book it within a year it can be exempted.

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adv. rajeev ( rajoo ) (Expert) 12 May 2011
if you invested the money within 326 months in the property you will get exemption.

Guest (Expert) 13 May 2011
Dear Rajeev,

Please review your answer if it is correct in so far as your answer speaks the investment to be made in 326 months, i.e., in more than 27 years?

Guest (Expert) 13 May 2011
Hi Anonymous,

The Capital Gains Tax exemption depends NOT on booking only, but on investment of amount equal to the Capital Gains in construction of new property within 36 months.

Now you have to decide whether you would be able to utilize the said capital gains amount in investment or not within the said period or not.

R.Ramachandran (Expert) 13 May 2011
Dear Mr. Dhingra,
What Mr. Rajeev meant was only 36 months, the 2 in between 3 and 6 is a typographical error.

MUKESH SHARMA (Expert) 15 May 2011
when you sold your property date is not cleared, whole capital gain if invested in flat can save your capital gain

Conditions
1) If the assessee has within a period of one year before or two years after the date of such transfer purchased, or within a period of three years constructed, a residential house.

pls clarify how much amount you paid for the house which is to be handed over to you 2014

soumitra basu (Expert) 16 May 2011
It is not understood whether the capital gain is long term or short term. If it is a short term capital asset there is no exemption.
Booking of flat within 2 years is permissible.

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