Mr A has sold NA plot and received long term capital gain of Rs. 40 lakhs in Oct 18.
Mr A's son and Mr A jointly has purchased new under construction flat in jul 17 (as per sale agreement with builder)
And now whether Mr A wants to pay demand dues of Rs 40 lakhs to the builder.
Whether Mr A can claim exemption of Rs 40 lakhs
if you had utilised entire net sale consideration received from sale of land for construction of residential property and construction is completed within 3 years from date of transfer of land then entire capital gain is exempt under section 54F.
54F provides condition for completion of construction within 3 years from the date of transfer of land and there is no condition when should the construction start
amount paid for repayment of loan will also be considered as amount utilised for construction only if loan amount was actually used for construction
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