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Capital gain

Smita (student) (104 Points)

16 October 2013

in case of a person claiming exemption u/s 54 or 54F, is it compulsory to complete the construction of New Residential Property within 3 years from the date of transfer?

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3 Replies

CA Pallav Singhania (IT System Auditor) (33262 Points)
Replied 16 October 2013

The transferor assessee should purchase or a residential house within a period of one year before or two years from the date of transfer or construct a residential house within three years from the date of the transfer of the original house. (Construction must be completed within these 3 years.), and

The new house property purchased or constructed has not been transferred within a period of three years from the date of purchase or construction.

For more detail in Capital Gain tax follow the link provided..

/articles/capital-gain-tax-simplified-18623.asp

regards,

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Mihir (Wealth Manager) (5293 Points)
Replied 17 October 2013

Completion of construction within 3 years is important but if there arises a problem which is beyond the control of the individual, the same can be presented to the ITO and the ITO may give some consideration.

Sanjeev Parasrampuria (B.Com CA Final CS Final) (273 Points)
Replied 17 October 2013

Originally posted by : Aryan Singhania (Pallav)
	The transferor assessee should purchase or a residential house within a period of one year before or two years from the date of transfer or construct a residential house within three years from the date of the transfer of the original house. (Construction must be completed within these 3 years.), and The new house property purchased or constructed has not been transferred within a period of three years from the date of purchase or construction. For more detail in Capital Gain tax follow the link provided.. /articles/capital-gain-tax-simplified-18623.asp regards,