Capital gain

This query is : Resolved

JAYAKUMAR.M.G

JAYAKUMAR.M.G (Querist)
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14 January 2012 I have received a capital gain during the AY 2011-12 of Rs 10 Lakhs by sale of my residential propery purchased during 2002-03.I had completed construction of a new residential house during August 2010. Now I want to know whether I am eligible to claim deduction under Section 54 of the capital gain against the house I had constructed more than one year earlier. Please advice me

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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14 January 2012 Condition for construction :

Within 3 years from the date of transfer of original asset.
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Whereas in case of Purchase within One year before the transfer of Original Asset and 2 years thereafter.
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So, if construction has been completed prior to sale of Original Asset, you can not claim exemption against the house constructed.
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