Section 54 of Income Tax Act

This query is : Open

subhash k. sinduria (Querist)
Follow

02 April 2009 Dear All,

I have a query which i am putting here as below:-

I have a house property as self occupied acquired 5 years ago.

I have entered into a purchase agreement with a builder regarding purchase of a flat in a under construction building.I will get the possession after 6 months from now.

I have a plan to sell my existing self occupied property and i want to avoid LTCG on the same.

As per section 54 of Income Tax Act, I can purchase a house property "one year before the date of transfer" to avail exemption of LTCG.

In my present situation as discussed above, my questions are as below:-

a) Will i get exemption under section 54 of Income Tax Act for my booking of A FLAT in a under construction building. Will it be a "purchase" and not construction so as to qualify for "one year before the date of transfer" cretaria ?

b) What will be the "date of purchase" ? Will it be the date of buy agreement or the date of getting possession ? This is relevant because accordingly i will plan the date of sell to qualify for exemption under section 54 of income Tax Act.

If answeres are based on any Rulings/circular, please indicate some reference so that i can retrieve the same.

Thanks

Subhash Sinduria

subhash k. sinduria

subhash k. sinduria (Querist)
Follow

15 April 2009 Dear all,

Please respond to my query.

Thanks,
Subhash

subhash k. sinduria

subhash k. sinduria (Querist)
Follow

28 April 2009 Dear all,

Is there anybody to solve this query ?

Subhash

Upgrade to CAclubindia Pro. Subscribe Now!