jay mehta (no) (25 Points)
07 March 2016If Payment in respect of purchase of a flat is made but neither sale deed nor construction of flat is completed by the builder . Is assessee eligible uner sec 54 to avail capital gain deduction ? There are 2 situation 1. 2 Years has not been completed 2. 2 Years has been complete
Reply as early as possible
CA PRATIK DHRUVE
(CHARTERED ACCOUNTANT)
(634 Points)
Replied 08 March 2016
Section 54 states that new property should be purchased or constructed for availing the deduction from capital gain of old property.
It does not state that if the assessee has paid advance for new property, such payment can be deducted.
In other words, mere payment, full or part, for purchase is not material for availing the deduction. The assesee should have executed the sale deed and the purchase should be completed to avail the deduction.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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