Long Term CG on sale of Res Property

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  1. Dilip Mohanty

    Dilip Mohanty New Member

    I have sold property in Mar 2013 & kept the LTCG in CG Account of SBI. I had booked a new flat in the name of my wife,myself & my son ( all have separate PAN) within one year of sale of the said property. This has been reflected in my tax return for AY 14-15 u/s 54. My queries are following.
    1- I have more than one residential property. Since I availed LTCG in Fy 13-14 and the limitation of having one residential house as per budget Fy 14-15 to avail exemtion of LTCG is applicable to FY 14-15 , I should not be affected by this I guess. Pl clarify.
    2- Total CG amount of mine will get invested in the new flat being purchased by us. The cost of flat is much higher than the LTCG amount. Since the ownership is with my wife, myself & my son, it should not pose a problem I guess to avail CG exemption. Pl clarify
    3- If total amount under CG account is utilised within 2 years from the date of sale of the flat, but there is delay in delivery of the flat by the Builder beyond 2 years, then can I avail exemption of LTCG ? Pl clarify.
    4- Does it mean that ''purchase of flat'" within 2 years from the date of sale is to complete the registration of the flat within 2 years of sale? Or it is to utilise the total amount of the CG account in the new flat within 2 years?

    Looking forward to your response.

    Dilip Mohanty
  2. Parul_Gupta

    Parul_Gupta Active Member

    1. The amendment introduced by Budget 2014 says that the Capital Gains should be invested in 1 flat only. So have you invested the capital gains in more than 1 house. It does not say anything about the no. of houses already owned by you.
    2. If the amount invested in your name in the new flat is more than the capital gains arising on the sale of the old flat - then there will not be any tax levied on the capital gains.
    Dilip Mohanty likes this.
  3. Dilip Mohanty

    Dilip Mohanty New Member

    Thanks Mam. Pl offer your views on point no 3 & 4 of your query. Regards. Dilip Mohanty
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