Would 2 combined Flats be considered as 1 Flat for Income Tax purpose?

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  1. daxesh_27565

    daxesh_27565 New Member

    SIR,
    First of all, I would like to express my lot of thanks to you for resolving the confusion regarding various taxation issues.
    Now, I would like to say that I earned long term capital gain by selling my old residential property in April'2014. Now I planned to purchase new residential property. I also selected new property (flats in a newly constructed complex). But, one flat is too small. Also, its cost is less than my full capital gain amount & I want to utilise my full capital gain amount So, I decided to purchase one another flat adjoining each other. i.e. flat No 106 & 107 adjoining each other on a same floor. But, according to the amandement in section 54 in 2014, capital gain amount should be utilise for the purchase of "ONE RESIDENTIAL PROPERTY ONLY" for getting full amount exempted. Builder is ready to sell two flats under one sale deed. So, my question is that, is it possible to considered two flats(in a single sale deed) as a SINGLE RESIDENTIAL PROPERTY.
     
  2. rudrabose

    rudrabose Active Member

    If the transaction is registered with the Registrar Office as 1 flat, these would be considered as 1 flat.

    If the transaction is registered with the Registrar Office separately for both the flats, these would be considered as 2 units.
     
    daxesh_27565 likes this.
  3. daxesh_27565

    daxesh_27565 New Member

     
  4. daxesh_27565

    daxesh_27565 New Member

    Mr. RUDRABOSE, Thank you very much for your very quick answer.

    Further, I want to state that this property is under construction and likely to be completed within a month. I want your expert advice that if I purchase flat no 106 & 107(Adjoined with each other on a same floor) and, if, I mention both the flat numbers in a single common sale deed, then is it allowed for the registration by the registration office. If it is allowed, then is it considered as a single residential property for claiming LTCGT exemption under section 54.

    Also, if I want to sell one of the flat after or before 3 years, then is it allowed to sell separately with the separate sale deed.

    I kindly request you to guide me as earliest as I have to take decision immediately. I will be oblige for your quick answer.
     
  5. rudrabose

    rudrabose Active Member

    The layout of the flat purchased is required to be submitted at the registrar office. And when they see that 2 separate layouts have been furnished with 2 separate kitchens, they will regard this as 2 separate units.
     
  6. rudrabose

    rudrabose Active Member

    If you submit just 1 single combined layout with just 1 unit - then they will regard this as a single unit.
     
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