I booked an under construction residential apartment in 2012 jointly in the names of myself and wife and am paying construction linked installments regularly. It will be ready for possession in June 2018. I have a inherited property in my name only and want to sell it this year. I do not have any other residential property in my/our name.
Can I claim the long term capital gain exemptions as per rule in this case?
5 Answers
Hi,
Has the property been registered? (Flat)
The inherited property, is it a vacant plot or residential house/flat?
Kindly note -
- The new house has to be bought one year before (under-construction property) the transfer of the first house or within two years after the sale. (For an Under construction property or flat , the construction has to be completed within three years of the transfer of the first property.)
Dear Sir,
1 The new flat is from a reputed builder, I booked in 2012 and is under construction. It will be ready for possession/registration in June 2018. I will get it registered in joint name with my wife.
2 The inherited property is a residential house and I am living in this house for last 45 years. My late father has willed it to me only. This property is still not transferred in my name, but I have got it mutated from MCD in my name. I want to sell this immediately after moving in to new flat.
Hi,
As I said,
- The new house has to be bought one year before (under-construction property) the transfer of the first house or within two years after the sale. (For an Under construction property or flat , the construction has to be completed within three years of the transfer of the first property.)
Dear Sir,
I consider you an expert CA on taxation matters. There are only two issues that need to be clarified:
1 Construction has taken 6-7 years. Logically, how will a person sell old house before the new one is ready? So, there must be some provision for this.
2 Old house is willed to me (in one name). New flat was booked in two names, My name as first holder and wife as second.
These two points are not clearly mentioned in the taxation laws. So, I request you to do some research and help me if possible.
Hi,
One point we can interpret ;
If you get the registration done (Flat) in this FY and then sell the inherited property in the same FY, we can consider the date of purchase (Flat registration date) as the date of acquisition which is within one year.
I am definitely not an expert in taxation matters.
Always advisable to get re-checked this matter with a professional like CA. In case, you get right and more information on this topic through a CA, request you to kindly share it here, can be useful to all of us! Thank you!
Kindly read :
https://www.relakhs.com/under-construction-property-holding-period/
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