Section 54 exemption

This query is : Resolved

Jayesh M Shah (Querist)
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26 September 2014 Assessee has booked flat with builder in the year 2007. He paid installment to builder regularly. He takes possession from builder after executing the agreement & payment of stamp duty in the month of July - 2011. He sold the old flat in which he was residing in the month of April - 2011. Whether he can take the benefit of section 54 for purchase of new flat. Whether it makes any difference if he takes possesion first & then sold the old flat within two to three months after taking the possession of new flat. Please advise.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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27 September 2014 As per section 54 exemption is available even if new house is purchased before sale of old one. Only condition is that the new one must be purchased within one year before the transfer of old one. In your case you have sold you old flat in April and got possession of new flat in july. Therefore you are eligible for section 54 exemption.