TaxTMI 
TaxTMI 
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?
Exemption of long term capital gain
21 Jul 2009 
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Long term capital gain: exemption depends on whether assignment of an allotment constitutes a transfer and qualifying reinvestment.
Whether the excess received on assignment of an allotment letter is a long term capital gain depends on whether that assignment constitutes a taxable transfer of the capital asset and on the factual date of sale; if treated as a long term transfer, exemption may be claimed by reinvesting in residential property under the statutory exemption framework (commonly invoked via section 54/54F), subject to holding period and reinvestment conditions. (AI Summary)
Whether the excess received on assignment of an allotment letter is a long term capital gain depends on whether that assignment constitutes a taxable transfer of the capital asset and on the factual date of sale; if treated as a long term transfer, exemption may be claimed by reinvesting in residential property under the statutory exemption framework (commonly invoked via section 54/54F), subject to holding period and reinvestment conditions. (AI Summary)