It is possible to treat the land and house as separate assets. You can bifurcate the sale amount between land and building on the basis of market value of each of them. Since the land is being sold after holding for more than 24 months, the gain will be considered long term. You will get indexation benefit on the cost of the land. Since the constructed house will be held for less than 24 months, the gain will be short term. I suggest that you contact a CA who will help you with the details.
Financial Planning for a 30 year old salaried employee
Sachin Shah is a 30 year old Senior Software Engineer, working at an IT services
company in Bengaluru. He and his wife want to plan for their retirement and also
want to save for their child's education, wedding and for buying a car.