Capital Gain

This query is : Resolved

Anish Chowdhary (Querist)
Follow

11 September 2010 In Capital Gain there is a provision that if the assesse sells his house and purchase a new house he can claim deduction of the cost of new house provided that he doesn't sells it within three years.

Suppose he enters into a agreement to sell the new house within three years, but have only received the advance money against booking in the period of three years will the provision be violated.

CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)
Follow

11 September 2010 Dear Anish,
under section 54 it has been given that if he transfers new house.

Here, in this case Assessee received only Advance money but transfer of ownership is not there, therefore there is no any violation of this section.

Regards!!!
Dinesh S. Adhikari