I have a question on tax treatment of capital gain arising from sale of under construction property immediately after getting possession.
Assuming below details
1. Date of paying earnest money to builder: 1-May-2011
2. Date of registering agreement to sale: 15-May-2011. Nearly 95% of funds collected by the builder by April 2013.
3. Date of getting possession letter: 30-Jun-14
Now, if one chooses to sell the property now, will the resulting capital gain be treated as long term capital gain or short term capital gain? Can such gain be tax exempt if the proceeds are used to buy another property?
How will the capital gain be calculated?
