Section 54 f exemption

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 August 2012 sir, whether Sec 54 f exemption available when we invest net consideration in construction of a residential house which was already started before date of sale?can we get exemption for that investment made in such construction or it is compulsory to start the construction after date of sale?

Pankaj Gupta

Pankaj Gupta (Expert)
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30 August 2012 As per a decided case of CIT VS J.R. SUBRAMANYA BHAT(1987) 165 ITR 571(KARN) , it was held that the construction of new house may start before the date of transfer, but it should be completed after the date of transfer of the original asset.
Hence you can claim sec 54F.