Dear sir,
Please keep in mind the following :-
1) At the time of sale, the property should be registered for the value not less than the value adopted for stamp duty purposes. Please ensure the same
2) The property is clearly mentioned as a Residential property in the Sale deed to be executed.
The following are the options available for you:-
1) You can Purchase/Construct another house property within 2 years (in case of purchase) / 3 years (in case of construction) from the date of sale.
2) The property so constructed/purchased should not be transferred/sold for next 3 years
3) If the sale proceeds are not used for construction/purchase of house property, the sale consideration shall be deposited in an account maintained in bank under Capital Gain Accounts scheme, before the due date of filing the return. (ie) For example , if you are selling in the month of Jan 2017, and till 31st July 2017, you are unable to use the amount for purchase/construction of another house property, the same should be deposited in Capital Gain account scheme deposit account with bank on or before 31st of Jul 2017. . The amount so deposited shall be used for purchase / construction of house property within 2/3 years as the case may be.
4) Another option is to purchase Capital Gain Bonds (NHAI/REC etc) which will be lock in for a period of 3 years and after three years, you are free to use the amount as per your requirement.
Kindly preseve the following documents for tax filing
1) Purchase deed copy of the property being sold
2) Sale deed copy
3) Any expenses incurred on sale- Proof for the same
Thank you
- CA B S Sridhar
Chennai