I am not sure whether this is the correct way to post a query i.e. as reply to an already ongoing discussion topic, but this is very related.
Say, I have sold my residential property this month i.e. July 2013 and incurr long term capital gain tax. However, I have already booked (i.e. entered into an agreement and completed the registration formalities) a new residential property say in June 2010 when the construction work had just been initiated. I got possession of the flat (evidence possession letter from the developer) also in July 2013, then can this be considered as reinvestment of the sale proceedings in a new residential property? In short, for purposes of IT exemption, is the registration date of the agreement or the possession date of the new property considered while determining the time period of the reinvestment?
Say, I have sold my residential property this month i.e. July 2013 and incurr long term capital gain tax. However, I have already booked (i.e. entered into an agreement and completed the registration formalities) a new residential property say in June 2010 when the construction work had just been initiated. I got possession of the flat (evidence possession letter from the developer) also in July 2013, then can this be considered as reinvestment of the sale proceedings in a new residential property? In short, for purposes of IT exemption, is the registration date of the agreement or the possession date of the new property considered while determining the time period of the reinvestment?