Benefit of sec 54 f -construction not completed with in 3 yr

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 June 2016 Land sold in june 2013 for Rs 65 lakhs, LTCG computed 42 lakhs. Flat booked in a residential complex being constructed by a builder for Rs 81 lakhs on july 2013 with promised completion date of Dec 2014.
Benefit of sec 54F was taken for full LTCG of 42 lakhs in ITR of 2014-15 AY as payment of substantial amount (Rs 72 lakhs) was made to builder by June 2014 before filing of ITR.
Now the complex is not ready and possession of flat is not likely before June 2016, i.e with in 3 years of sale of land. What will be tax implication -- will ITO add 42 lakhs in 2016-17 as LTCG and the amount will be taxed as LTCG now?

Rupesh Jain

Rupesh Jain (Expert)
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17 June 2016 for taking benefit of this section, construction will complete with in 3 years, its income of the year in which 3 years will expire, means its taxed in year 2016-17.