Part1: My FIL sold a property for Rs.1.5Cr in Apr 2014. He deposited Rs.50L in 54EC bonds in Oct 2014 (within 6 months). He has finalised a flat to purchase to set off LTCG tax. The price of the flat is Rs.1.2Cr. He is planning to pay Rs.1Cr left from his LTCG and 20L out of his own funds. The catch is that the builder is just starting the work and the project will take 3 years to complete i.e. approx April 2018. Though my FIL would have paid all of his LTCG amount before April 2017 (3 years from the time of his sale) and the registration of the UDS and the construction agreement would happen some time in 2016, the flat would be handed over by mid 2018 only. My query is that is it enough if my FIL would have handed over all of his LTCG (leftover after 50L in 54EC) within 3 years of his property sale and acquired "considerable ownership" over the new flat by means of allocation letter and registration of UDS and construction agreement? Note that the agreement with the builder is about to be signed in two weeks from now and the agreement would clearly say that the project would be completed in 36 months from agreement date. Some articles online indicate that construction has to get over. Some others say that it is enoiugh if major portion has been paid out and considerable ownership over new property has been established. Can experts here please clarify? Please note that the property that he sold was his only residential property. I know that looking for some completed or about to be completed project is better. But this is the one project that satisfied all aspects of all family members. Hence the query. Part 2: Assuming that the registration of the UDS and construction agreement happens in Jan 2016, if at all my FIL decides to sell the house, can he sell it any time after Jan 2019 in order for the sale to qualify as LTCG and not STCG? Or should he wait till 3 years from time of hand over?