LTCG from sale of plot

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  1. sanjukant

    sanjukant New Member

    Sir please provide your valuable guidance for...
    I have booked UNDER CONSTRUCTION Residential Flat on 09.03.2015 by paying token money. However the registration of UNDER CONSTRUCTION Residential Flathas done on 05.04.2016.
    schedule possestion in DEC 2018.
    I made agreement (sathekhat ) for sale of plot on 10 th Feb. 2016 and EXECUTEDE registration for Kharedikhat on 7.04.2016 after receiving full payment.
    I am planning to invest entire plot cost in above Booked flat.
    Please let me know whether i am eligible to avail benefit under Income Tax 54 F .
    The period of Booking of under construction flat ; whether from registration or from token booking please clarify.
     
  2. ZED

    ZED Well-Known Member

    You are not eligible for claiming the exemption u/s 54F.
    Exemption u/s 54F is available if the property is a long term capital asset.
    Basically, a long term capital asset means an asset which has been held for 3 years or more.
    In your case, it is a short term capital asset and hence NO ANY exemption is available.
     
  3. sanjukant

    sanjukant New Member

    Sir please go through my querry. I have sold open plot and agreement (sathekhat ) for sale of plot on 10 th Feb. 2016 and executed registration for Kharedikhat on 7.04.2016 after receiving full payment. The plot was purchased long back in 2002and want to invest entire amount in the purchase of new flat booked on 9.03.2015 with token money and registration done on 30.03.2016.
    Please let me know whether i am eligible to avail benefit under Income Tax 54 F .
    The period of Booking of under construction flat ; whether from registration or from token booking please clarify.
     
  4. ZED

    ZED Well-Known Member


    Date of registration as provided by you do not match among your posts.

    Was the allotment letter received? If then also provide its date.


    I request that you mention all the dates in ascending order and please provide more details in respect of the new property. There are some factors which require consideration. Lets start this topic afresh (in this thread only)
     
  5. sanjukant

    sanjukant New Member

    Sir.
    1. N A Plot on the name myself and wife purchased in 2002 .

    2. New under construction flat (myself and wife ) was booked on 09.03.2015 by paying token money.

    3. Agreement for sale of above NA plot made on 10.02.2016 " Sathekhat ' agreement.

    4. Above booked under construction flat registration executed on 30.03.2016.

    5.Above NA plot Kharedikhat ' agreement.made on 07.04.2016 after receiving full amount.

    6. Entire amount is deposited in Capital Gain Account. APRIL 2016

    7.Part payment disbursed as per installment from capital gain account against above booked under construction flat.

    8. Entire deposited capital gain amount is required for the complete all installments of the under construction flat.
    9. Possestion of under construction flat in DEC 2018.

    Please let me know whether i am eligible to avail benefit under Income Tax 54 F .
     
  6. ZED

    ZED Well-Known Member

    Sir,
    There has been some delay in replying to your case because of workload.

    I will not recommend claiming exemption in this case.

    There are some judgements which have disallowed the exemption where booking has taken prior to the date of transfer.
    For eg
    ACIT vs. Sagar Nitin Parikh (ITAT Mumbai)

    Whereas there are some judgement wherein the court have held that the amount of invested which relates to the period prior to the date of transfer of the property shall not be allowed, but remaining amount can be allowed as exemption.


    Due to the litigations, I recommend you take the safest route and do not claim exemption in this case.

    What is your jurisdiction?
     
    Last edited: Jul 8, 2016
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