Capital gain on redeveloped flat to be sold in 2 years

Ours is coop hsg. soc.situated in south mumbai.we have redeveloped the society on our own by giving private contract instead of appointing any builder under rule 33/7.Extra FSI was taken by existing soc members only by contributing the funds as per rate decided for per sq ft basis.the work started in 2008 & completed in 2015.possession given on
March 2015. 

The original area was 290 sq ft carpet and the present allotted flat is 670 sq ft carpet area. We have contributed for the extra amount in phases and instalments as was decided by the society.

     We have recd MHADA Final O.C. by June 2016 & BMC O. C.is in the pipeline and may get in 3-4 months.if I want to sell this property & want to invest in other property do it attract any capital gain tax. 
     we have been given to understand that one deal of Flat in the said building  has already happened by paying necessary stamp duty etc and the agreement is registered  with the stamp office & on the basis of the documents submitted by the buyer who has also taken a  
loan from a cooperative bank.
     pls note that we paid first advance in 2008 ,2009,2010,2013,2014,2015 on installments basis.
     kindly guide about this.
Asked 1 year ago in Capital Gains Tax from Mumbai, Maharashtra
SIr yes you will get capital gains tax on sale. Need to check the allotment letter received by you in 2008. in any or else the date of possession will be taken as 2015 only. 

Sir in your last but one para you mentioned that the agreement is registered and so on. If the agreement is registered then you can take advantage of the same and save tax
Shyam Sunder Modani
CA, Hyderabad
1408 Answers
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  Talk to Shyam Sunder Modani
Dear Sir

Yes, the capital gain tax would arise on sale of the property. However, you may avail exemption from paying capital gain if you invest sufficient amount in the new residential house within the prescribed time. This is subject to the fact that property is long term capital asset which will depend upon the allotment letter.

Please feel free to call/revert in case of any doubts

Thanks and Regards
Abhishek Dugar
CA CS B.Com
Abhishek Dugar
CA, Mumbai
2754 Answers
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Hello Sir,

The only option to save Capital Gains is to invest the capital gain in a new residential property or to invest it into Gapital Gain Tax Saving Bonds upto a maximum of Rs.50 Lacs.

Trust this clarifies your query. 

Feel free to call / get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP 
Rohit R Sharma
CA, Mumbai
2089 Answers
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Hi,
here are few case laws in the link given below, which will help you in deciding that your case falls under long term capital gain.
http://taxguru.in/income-tax/date-allotment-date-possession-compute-capital-gain.html.

i believe that you can easily go ahead and can claim long term capital gain tax exemption by investing in other property.
Vishakha Agarwal
CA, Bangalore
431 Answers
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