Sec 54 exemption

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 December 2014 Dear Friends,

Assessee wants to sell his property which was bought in Feb. 2006, now he wants to get exemption of Capital Gain by investing in new property and part of investment has already been done which was registered in 2012.

Futher we clarify that new Property is under construction (builder) and possession will be available in Jan,2015.

Can assessee get exemption????

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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17 December 2014 For claiming exemption u/s 54 the construction should COMPLETE AFTER the date of transfer & within 3 years of the date of transfer.

The construction can START BEFORE the date of transfer. The only condition is that it should complete AFTER the date of transfer.

So the assessee is eligible for deduction u/s 54.