I sold my flat for Rs 6 lakhs (sale agreement registered on May 15, 2005 and sale deed registered on June 6, 2005). My long term capital gain tax (after taking advantage of indexation) comes to around Rs 4.5 lakhs. I booked a house with Central Govt Employees Welfare Housing Agency (CGEWHO) and paid about 2.0 lakhs on October 10, 2004 and 1.5 lakhs on June 3, 2005 as part payment towards the eventual cost of a flat which is still under construction. I still have to make some additional payments as and when CGEWHO demands in future.
My question is as follows.
1. Do the installments paid on October 10, 2004 and June 3, 2005 (within one year before the sale of the flat) qualify for rebate u/s 54. I do not own any other immovable property?
2. If these payments do not qualify for rebate, then within how much time should I invest my capital gains of Rs 4.50 lakhs so that I do not have to pay any capital gains tax?
I shall be extremely thankful to you for your kind advice.
