Capital Gains Tax Exemption for Investment in 2 Flats?

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  1. swalka29

    swalka29 New Member

    I have sold my property A for which the capital gains accounts to be 24 lacs. I will be entering into the sale agreement in first week of march 2015 for the same.

    Meanwhile to reinvest the amount a token money was paid and properties B & C were booked in march 2013.

    The work at B & C has just been initiated and also we would be entering into an agreement in march 2015 for the same.

    Can this property be considered to avail exemption from capital gain tax from sale of property A.

    Total cost of B & C is more than capital gains from property A

    Would like to mention that B & C are two adjacent flats. Wherein cost of each flat is 28 lacs and amount paid until now for each flat is 12.5 lacs.
    Last edited: Feb 4, 2015
  2. rudrabose

    rudrabose Active Member

    Yes, these properties can be considered to claim capital gains exemption under section 54

    However, to claim exemption the capital gains are required to be invested in 1 property only (amendment brought in by Finance Act 2014)

    The balance amount can be invested anywhere i.e. any property/ stock/ fd/business etc
  3. swalka29

    swalka29 New Member

    Thank you sir

    If we make a single agreement of both flats together (if possible)
    Than I hope both the flats can be considered for capital gain
  4. rudrabose

    rudrabose Active Member

    Combining 2 flats won't work because as per Stamp Valuation Department, they would be different flats.

    However, please note that you only have to invest the Capital Gains in 1 flat and not the whole sale proceeds
  5. swalka29

    swalka29 New Member

    Thanks a lot for your valuable suggestions
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