Section 54 applicability on sale deed registered after 2 years

Yes ...... payment made by 03/05/2018...... only registration delayed for a week. Make sure possession received by 03/05/2018 (in writing)......... Good luck .....

Thanks for the helpful reply Sir.

Yes! in the unregistered agreement and also in registered sale deed, it says that on payment of 59.4 lacs through demand draft dated 03/05/2018, possession has been delivered and received on 03/05/2018 itself. There is also a letter of possession dated 03/05/2018 saying the same.

Sir, then will this amount of 59.4 lacs be eligible for deduction under sec. 54 even if it not an underconstruction property?

But the bank deposited the TDS amount of Rs. 60,000 after 05/05/2018 and on 11/05/2018... which was directly debited from the CGAS account.

So, can that TDS amount of Rs. 60,000 be also eligible for deduction under sec. 54?

Total deduction hence claimed = 59.4 (DD) + 0.6 (TDS) = 60 lacs ?

According to 26QB and all other relevant dates:

(26QB) Date of Agreement/Booking = 03/05/2018 (both unregistered sale agreement and also registered sale deed, same date of execution)

(26QB) Date of Payment/Credit = 03/05/2018 (demand draft dated 03/05/2018 sourced from CGAS account)

(26QB) Date of Tax Deduction (TDS) = 03/05/2018 (mentioned in the memos of both unregistered sale agreement and also registered sale deed but TDS amount not deposited on the same day but later)

Date of Execution of Unregistered Sale Agreement = 03/05/2018

Date of Execution of Registered Sale Deed = 03/05/2018

Date of Registration = 10/05/2018 (only the sale deed is registered)

But, date of debit of Rs. 60,000 from CGAS account for TDS payment by bank = 11/05/2018 !!!

It is not just the payment release date, but payment paid date is considered.

But when you have received possession with the registered sale agreement (executed) on 03.05, it is considered as the purchased date and that date is within the available time period allowed for exemption u/s. 54.

Some formalities like registration etc. require third party intervention and that part is not in your hand, so need not worry, and for all purpose keep in mind that the purchase date of new property remains 03.05.18.

Yes, TDS deducted can be paid by 30th of next month, which is within due date; and the amount allowed as purchase price, which is clearly 60 lakhs, in your case. (even include stamp duty & registration charges to that)

 Thank you Sir. Excellent explanation. But one thing:

Originally posted by : Dhirajlal Rambhia
	But when you have received possession with the registered sale agreement (executed) on 03.05, it is considered as the purchased date and that date is within the available time period allowed for exemption u/s. 54.

The sale agreement executed on 03/05 is unregistered. So I do not want to consider that agreement and show that it never existed.

I want to wholly depend on the registered Sale Deed (Deed of Conveyance) which was also executed on 03/05 and wherein, it says that upon payment, I have simultaneously received vacant possession free from encumbrance.

" I want to wholly depend on the registered Sale Deed (Deed of Conveyance) which was also executed on 03/05 and wherein, it says that upon payment, I have simultaneously received vacant possession free from encumbrance."

Yes that's exactly correct... & enforceable......

Thank a lot for the reply, Sir. Very much appreciated.

Best of luck..    

Yes TDS u/s. 194 IA is applicable ...