Investment prior to sale of property

Hi,

Hope you are doing well !

You are not eligible for LTCG exemption u/s 54F because you have brought land before 1 year i.e. on 23/07/2015 from the date of transfer . You have to purchase the land on 25/12/2016 i.e within 1 year from 26-12-17 .

So, you are not eligible for exemption u/s 54F because another property should be purchased in within 1 year before date of transfer.

Section 54 F:

This section is available to all those assets other than residential houses. So for claiming long-term capital gains arising from selling off land also, this section can be utilized. Here one can claim relief on the tax liability on capital gains but with following conditions:

a) A new residential property either bought within two years or constructed within three years from the date of transfer of existing property. In the case of buying a new property, the exemption is available even if it is bought within one year before the date of transfer.

Thanks & Regards,

Payal Chhajed

It is the date on which you entered in to construction agreement with builder should be considered as date of purchase of new property.

date of sale of land is 26.12.2017

date of purchase of land is 31.12.2004. yes, it long term

date purchase of land for house is 23.7.2015 it is purchase before (more than 2 year) and hence capital gain exemption is not available

(construction should be completed withing the period of 3 years is another condition).

Dear Sir,

You are not eligible for Long term capital gain exemption. You have purchased land before more than 2 years from the date of transfer. Date of construction agreement with builder will be considered date of purchase of new property.

Conditions for exemption:

The new residential property must be purchased either 1 year before the sale or 2 years after the sale of the property/asset.

Or the new residential house property must be constructed within 3 years of sale of the property/asset.

Warm Regards,

Karishma Chhajer

Dear Sir,

You are not eligible for capital gain exemption as the completion of construction of the property is done before the transfer of property i.e. 26.12.2017.

Thanks

Hi,

No you are not eligible for capital gain exemption.

Regards,

Nikhil.

Date on which you entered in to construction agreement with builder will be considered as date of purchase.

Regards,

Nikhil.

Hi

No, capital gain exemption shall not be available.

For claiming exemption with regards to the above property, construction should have completed after 2-12-17.

Hi,

Unfortunately, you are not eligible for capital gain exemption u/s 54F because the Construction of your property was done before the date of sale of old property.

For claiming exemption, Construction should be completed within 3 years of selling the old property.

Hi

You are not eligible for exemption.Date of construction agreement with builder will be considered here.

Thanks

as per section 54 & 54F construction must be completed within 3 year of sale original asset in you case construction completed before transfer of original asset hence in my opinion no exemption.but still proper tax planning can avoid this problem