banner_ad

Capital gain

This query is : Resolved 
Profile Image

Profile Image

(Querist)
01 August 2013 Mr. X sold his residential house and claimed exemption u/s 54 amounting to rs 30 lacs.

breakup of exemption claimed:
exemption on account of purchase of flat under construction link payment plan
Rs. 5 Lacs paid before 31st july
Rs. 25 Lacs deposited in CAG scheme..

now Mr. paid all the money (Rs 25lacs) before 3 years from the the date of transfer of his residential house but he didn't get possession on the default of construction company..

in the above scenario will the exemption be disallowed on the ground of possession?


Point to be considered:

1) whether flat under construction link payment plan amount to purchase or construction? (a view can be taken that construction company constructing the flat on the behalf of Mr. X)

Dear Experts please reply..
Profile Image

Sanket Shah

Profile Image

Sanket Shah (Expert)
01 August 2013 Sec 54 is beneficial provision. Hence it can not be construed in strict manner. Mr X has used the funds for intended purpose. He will not be denied exemption u/s 54. There are various favorable case laws on the issue.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
19 May 2026
Accountant

ca kunjan

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
07 May 2026
CA Assistant

amit desai and co

Mumbai

CA Final

View Details
Company
19 May 2026
Fundraising Expert

MentorsWorld Ventures Private Limited

Ahmedabad

Others

View Details
Company
Featured 28 May 2026
SEMI QUALIFIED/ CA DROPOUTS/ ARTICLES

T R SOOD & CO

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 02 May 2026
Accounts and Audit Assistant

Kothawade and Laddha

Thane

B.Com

View Details
Company
23 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details