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    Taxation of capital gains on redevelopment of a property is new phenomena and just evolving. Though you have demolished your house and handed over the possession of the land to the developer, you will still be able to claim the tax exemption under Section 54. As far as the question as to the number of the houses for which you will get exemption,

    the law has been amended by finance act 2014 restricting the benefits only for one house unless both the flats which you will get are going to be used as single residential unit. The incidence of capital gains generally gets triggered on the incidence of transfer of the capital gains even if you have not received the sale consideration. So in your case staggering of the receipts of money from the

    developer is not going to help you in any tax planning under Section 54EC for capital gains bonds. Since the subject of taxation of capital gains on redevelopment of property is not so simple and need to take into consideration various factors, I would advise you to kindly take help from a Chartered Accountants or a tax expert as the stakes are generally very high.

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