capital gain

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bhushan gupta (Querist)
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12 March 2010 one assessee has sold a residential property in 09-10 on which he earned a capital gain of Rs.20 Lakh. Assessee already owned a residential house. He also invested some money in the form of installments in some properties which have not completed.The possession of those properties is not given to the assessee.My questions are:

a) Whether the assessee can investment the proceeds of sold residential property in new residential property to claim the benefit under section 54?
b) if not, what are the option left with him to claim the exemption?

bhushan gupta

CA Shishir

CA Shishir (Expert)
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12 March 2010 The question is whether amount is invested as per the provisions of Sec 54. If its done you can claim benefit. You will not anywhere in the return mention that whether you have the possession of the flat. But the proof of having paid the amounts is required when the AO will ask