Benefit u/s 54 on sale of house property
need your guidance on this,
i have purchased flat A in F.Y 2012-13.for 15 lakhs and i m selling it now in F.Y. 2018-19 for 27 Lakhs.
i have booked a under construction house B in F.Y. 2017-18. for 25 lakhs
for flat B, Paid 1st installment of 5 lakhs in March 2017. and done registration in March 2017 only (builder advised to do it immediately as after july2017 GST was getting applied)
after that i have Paid 6 Lakhs Rs. in Oct. 2017 and thereafter as per the demand raised by builder on completion on work.
possession to flat B in Dec. 2019.
as per my knowledge , from house A i will earn Capital Gain , but if i reinvest the capital gain in another house " 1 year before or purchase property within next 2/3 years from the sale date , i dont have to pay capital gain.
my question is can anybody please elaborate "1year before the sale date" condition ... i read some articles where the purchase date considered a agreement / registration date, somewhere it is said Possession Date /O.C. Date or a date on which the 100% payment made to builder.
so the arising capital gain on sale of Flat A (assuming. flat A sale deed date Oct. 2018), can i claim exemption u/s 54 as i purchased flat B (1 year before or 2 year after flar A sale date) ???
the new flat B purchase agreement made around 18 months before the sale date of Flat A but the possession will be in Dec. 2019.
Thank you in advance .
Asked 8 months ago in Income Tax from Thane, Maharashtra