Section 54

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 October 2011 whether purchase of flat u/s 54 includes flat booking?
and if yes, what is the time period of booking the flat in order to claim exemption under this section?

Rahul Gupta

Rahul Gupta (Expert)
Follow

20 October 2011 The purchase of house should be within a period of 1 year before the transfer or within 2 year after the date of transfer.
If the substantial amount is paid in terms of purchase agreement within the stipulated period, the exemption u/s 54 is available even if the possession is handed over the stipulated period.