Claiming Section 54(f) benefit for under-construction property

Akash Singhal (2 Points)

21 July 2022  

Hi

I have recently purchase an under-construction property from a builder in Jul'22. I have to make payments for the property in installments linked to construction. Possession is expected in June 2025.  I have a few doubts regarding claiming 54(f) benefits:

1.) Can I claim exemption on LTCG arising in FY22?

2.) As the possession is expected in Jun 2025, can I claim Section 54(f) in subsequent years (FY23, 24, 25) for LTCG that will arise on those years?

3.) In my ITR filing for this year, what should I show as the date of purchase as the property isn't fully constructed yet?

4.) Post receiving possession, I will be paying home loan EMI. Will the LTCG consumed for loan repayment in future years be eligible for section 54(f) benefit?

Thanks!