Time limit for reinvestment in residential property upon sal

1.  100% Long Term Capital Gains can be claimed, IF the property is sold AFTER holding it for TWO years.  Similary reinvestment in immovable property or Capital Gain Bonds, also should be done WITHIN TWO years, from sale deed date.

2.  HOWEVER IF the property is not declared in the Income Tax returns, in the last two years, THEN the above CANNOT be claimed.  Loan Interest, Repairs & Maintenance expenditure incurred on the property CANNOT be claimed for the purposes of Long Term Capital Gains

Keep Smiling .... Hemant Agarwal

You can benefit from the post of Mr. Hemant Agarwal.

Thanks a lot for Mr. Hemant ji and Mr. Kumar ji. I have further followup. Actually, my father had availed bank loan prior to his demise for his personal needs. So, I and my brother had mutually contributed and closed the loan before effecting partition deed. 

Also, I had enhanced the livable area by further constructing the house for which I have municipal assessment of plinth area records. Also, I had acquired additional 11.5 sq. yds. out of my brothers share for smooth partition with less civil work by paying him rs.6.5 lacs. 

So, can i claim them to be my acquisition costs. 

I will be glad for the solutions. 

1.  Capital Expenditure (documentarily proven construction cost of additional areas) shown in the Income Tax returns, can be added for the purposes of Capital Gains.

2.  For conclusive detailed calculations, kindly prefer to have a one-to-one discussion with your local Chartered Accountant.

Keep Smiling .... Hemant Agarwal

Its very nice of you to clarify regarding additional development costs. Thx a lot sir.