Capital gain: exemption u/s 54

This query is : Resolved

kunal (Querist)
Follow

06 September 2013 dear experts,
Mr. A own one house since 1995..
in may 2012 he entered into an agreemnet to purchase another flat under construction linked payment plan..

in august, 2013 he sold his old house and capital gain comming out to be Rs. 25 lacs..

installments of Rs. 30 lacs are still due toward the purchase of new flat..

now my question is , whether Mr. A claim exemption of Rs. 25 lacs under section 54..
as he entered into a agreement to purchase new house much before than 1 year..

thanks!!!

CA Pallav Singhania

CA Pallav Singhania (Expert)
Follow

06 September 2013 No, Exemption U/S 54 is applicable when the assessee purchased an another property with the one year before or 2 years after the due date of transfer of the property sold

OR

Construction of the residential HP within a period of 3 years from the date of acquisition,
Provided that the new residential HP purchased or constructed is not transfer with a period of 3 year from the date of acquisition...

Message likes : 1 times

kunal

kunal (Querist)
Follow

06 September 2013 sir i agree with you but dont you think this is littel bit harsh on the assessee

please tell if there is any case laws (in favour) regarding the same

CA Pallav Singhania

CA Pallav Singhania (Expert)
Follow

06 September 2013 Commissioner Of Income-Tax vs J.R. Subramanya Bhat on 9 June, 1986

here is the link below..
https://indiankanoon.org/doc/237769/

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

T.N.Reddy

Sreekumar J Pai

asmita gupta

Keshav Dubey

kambamcr@gmail.com

Subscribe Now

Capital gain: exemption u/s 54

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Manager- Finance and Compliance

GST CONSULTANCY

Accountant

GST CONSULTANT

Senior Executive

CA Final