Long Term Capital Gains Tax - Reinvesting in a Property

[Asked by Guest]

Dear Forum Members

I had sold a plot in February 2014, and I am re-investing the proceeds (capital gains portion - LTCG) in a vacant plot and constructing a building / dwelling unit on the plot within the 3-year timeframe as per Sec 54A capital gains act

I am buying 2 plots that are 2280 square feet each (a total of 4560 square feet) as part of the capital gains re-investment. The query I have is

1. Should I register both plots in 1 single sale deed, or
2. Can I register both plots in 2 separate sale deeds?

Will this have an impact on my capital gains re-investment with the Income Tax department?

Suggestions from experts on this forum will be very much appreciated

Regards

P S Krishnan

AI Summary

Long Term Capital Gains reinvestment: whether single or separate sale deeds affect exemption under section 54A.
Question whether proceeds from sale of a plot, reinvested in two vacant plots and residential construction within the statutory three year reinvestment window under the capital gains reinvestment provision, qualify for the capital gains exemption, and whether registering the two plots in a single sale deed versus two separate sale deeds affects eligibility.