06 September 2013
dear experts, Mr. A own one house since 1995.. in may 2012 he entered into an agreemnet to purchase another flat under construction linked payment plan..
in august, 2013 he sold his old house and capital gain comming out to be Rs. 25 lacs..
installments of Rs. 30 lacs are still due toward the purchase of new flat..
now my question is , whether Mr. A claim exemption of Rs. 25 lacs under section 54.. as he entered into a agreement to purchase new house much before than 1 year..
06 September 2013
No, Exemption U/S 54 is applicable when the assessee purchased an another property with the one year before or 2 years after the due date of transfer of the property sold
OR
Construction of the residential HP within a period of 3 years from the date of acquisition, Provided that the new residential HP purchased or constructed is not transfer with a period of 3 year from the date of acquisition...
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