Exemption u/s 54

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 July 2013 Dear Experts,

Exemption u/s 54 is available for purchase of residential house 1 year before and 2 years after from the date of transfer of a residential premises. What is date of transfer in this context? Is it sale deed registered, possession letter, payment proceeds??

Also purchase of residential house in under construction building is allowed for exemption u/s 54. If yes what is the date...date of registration, possession, payment made in advance before possession and registration?

Anand Modi

Anand Modi (Expert)
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09 July 2013 Yes in this context the word date of transfer refers to the date of registration of property with registrar or the date of stamping which ever is earlier.

However as per section 53A of transfer of property Act, The Property can be considered transferred if all the consideration has been received and possession has been given and an agreement to that effect had been made.
Thanks and Regards