Naresh Patel (C.A. Final) (144 Points)
26 July 2011One has just sold his house and he earned capital gain therefrom and wants to acquire the flat, which would be used as his residence, now that flat is in under construction and the same will be completed within period prescribed u/s. 54 (i.e.3 years). So Can he deposit the Cap. Gain in The Capital Gain A/c. to claim the deduction U/s. 54?
(Main Point to be considered is that flat to be constucted is by anyone else and not by assessee himself.)
Sunshine
(Helping All)
(10575 Points)
Replied 26 July 2011
yes it will qualify fr the exemption but the assessee has to get the ownership i.e purchase the house within the specified time period of 2 years...if he was constructing on his own it would have been 3 yrs time period
CAclubindia
