OUR CLIENT IS A SENIOR CITIZEN RETIRED FROM A PSU OWNING A PLOT OF LAND IN GAZHIABAD.THIS LAND WAS PURCHASED IN 1996 FOR A SUM OF7 LACS.OUR CLIENT IS HAVING A HOUSE PROPERTY AT MUMBAI AND HE IS USING AS SELF OCCUPIED PROPERTY.IN DECEMBER 2010,THE PLOT OF LAND WAS SOLD FOR RS88 LACS AND THE CLIENT HAS DEPOSITED THE ENTIRE AMOUNT IN A CAPITAL GAINS ACCOUNT WITH A NATIONALISED BANK.SUBSEQUENTLY HE BOOKED A HOUSE PROPERTY WHICH IS BEING CONSTRUCTED BY A REPUTED BUILDER AT MUMBAI AND REGISTRATION OF SALE AGREEMENT TOOK PLACE IN NOVEMBER 2010.THE HOUSE WILL BE GIVEN POSSESSION ONLY IN JANUARY-FEB2014.THE FOLLOWING ARE THE QUESTIONS:
1.WHETHER THE CLIENT WILL GET EXEMPTION U/S 54F?
2.SINCE THE CONSTRUCTION WILL BE COMPLETED IN 2014 WHETHER THIS WILL BE CONSTRUED AS CONSTRUCTION BY HIMSELF.?
3. IN CASE OF ANY DELAY IN POSSESSION WHAT WOULD BE THE CONSEQUENCES?(WILL HE LOOSE THE EXEMPTION ?)
4.UNDER LAW WHEN HE DEEMED TO HAVE"COMPLETED THE PURCHASE/CONSTRUCTION" TO AVAIL THE BENEFIT OF SECTION 54 F?
THANKS IN ADVANCE,
T.V.S.RAGHAVAN
CAclubindia
