I sold a flat in May 2014 (purchased in May 2008), capital gains from which were around Rs. 60 lakhs. I am now (Dec 2014) purchasing an under-construction flat in a multi-storied building. Builder will endorse the original builder buyer agreement in my favour. Original agreement is at a value of Rs. 62 lakhs. My transaction (resale - buying from original allottee) value is Rs. 1.2 crore. I am taking a loan of Rs. 50 lakhs for part funding. I understand registration on possession will be on original agreement value with the builder.
Am I safe as far as long term capital gains tax on flat sale of May 2014 is concerned, as I have actually re-invested more than that? Only confusion is that the full amount would not come into registration records. Of course, I will pay TDS on the transaction am doing now, as per the Rs. 1.2 crore value (I have entered into a stamped and notarized agreement with the original allottee for this transaction).
If there is an issue, what would be the way out?
Thank you so much for your guidance.