Exemption of long term capital gain

[pran shangari]

I have received the allotment letter for a flat and I have also paid 80% of the agreed amount to the builder/society in two years time.Since I am getting a good price for my flat I have made an agreement to sale with the prospective buyer.The right in the flat is transferred through the society to the buyer after holding it for more than 36 months.I want to invest in a new house propery.My query is as follows: 1. Under what section I will Claim Exemption of Long term capital gain and why?

AI Summary

Understanding Long-Term Capital Gains Exemption for Flat Sale: Key Insights on Section 54 and Sale Date Determination An individual inquired about claiming an exemption for long-term capital gains on a flat they sold after holding it for over 36 months. They had paid 80% of the flat's cost and transferred the allotment letter to a buyer before the flat's completion. The respondent advised determining if the transaction qualifies as a transfer of long-term assets under the Income Tax Act, 1961, specifically referencing Section 54 for potential exemptions. The discussion highlighted the importance of establishing the actual sale date and whether the flat was sold before the execution of the sale deed.