Simran Katyal (Chartered Accountant) (182 Points)
15 March 2017In regards to Sec 54 of Income Tax Act, exemption is available if:
a) New Property purchased before 1 year / after 2 years of sale of property., or
b) Constructed withing 3 yrs from sale of property
My query is that, will the exemption be available if a property is constructed before 1 year of sale of property, as section specifies 'Purchase before 1 year'.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(183191 Points)
Replied 15 March 2017
No; only the expenditures on construction during the specified period are allowed for exemption, even though the construction may have commenced prior to that date.
CA Gopal Somani
(Consultant)
(2057 Points)
Replied 16 March 2017
Please check my reply on
/experts/exemption-under-sec-54-2451039.asp
Nitish Agrawal
(CA)
(810 Points)
Replied 16 March 2017
| Originally posted by : CA CS Gopal Somani | ||
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Please check my reply on /experts/exemption-under-sec-54-2451039.asp |
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Excuse me sir, I have a doubt regarding section 54F is it immaterial when the construction expenses has been incurred and if construction is completed within 3 years of transfer of property...all the construction expenses (pre and post transfer) will be eligible for considering for exemption or else only post transfer construction expenses will be eligible expenses for computing exemption amount. Please clarify.
Thank & regards,
CA Nitish Agrawal
CAclubindia
