I understand that one of the ways of getting exemption from LT capital gains tax on sale of a flat in a CHS, is to re-invest it in another flat within the "time-window" starting 1 year before and up to 2 years after the sale of the former flat. AFTER selling the former flat, if I book a new flat in a residential project under-construction, which date will be considered as falling (or not) within the allowable 2 year "window" mentioned above? Is it the date of booking the flat (i.e. signing the agreement with the new property developer) or the date on which the builder gives possession of the flat to me? I ask because often there are inordinate delays in handing over the flat by the builder. Thanks and Regards.
Your query is not related with the topics we handle under this Forum. Anyway. Date of allotment is crucial to decide the date of acquisition of the house property.

Exemption under section 54 – Invest in residential house property in India

Within a period of one year before or two years after the date of sale, one can purchase or within three years after the date of sale, one can construct a residential property in India.

The amount to be invested in the new house is the amount of capital gains (and not the sale proceeds). If the entire amount of capital gains are invested in the new property, the said gain would be exempt from tax. If the amount of capital gains is more than the acquisition cost of the new asset, the uninvested amount shall be liable to tax.

The new house property has a lock-in period of 3 years i.e it cannot be sold within 3 years of its purchase.

If you are unable to purchase/ construct the new asset before date of filing of return, the uninvested amount has to be deposited into a Capital Gains Account Scheme. This amount has to be utilised for the purchase/construction within the period mentioned above.

Since property transaction involve large values and tax implications, it is better to consult a professional CA before doing such transactions.
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