Capital Gain exemption u/s 54f

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Nutan (Querist)
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18 February 2010 Assessee has received consideration from sale of shares and for claiming capital gain exemption u/s.54f has considered to invest in a house property, Now the sale agreement value is lower than the consideration received . So would spend the 10% remaining amount for consideration would spend on improvement such as interior work which would be in the nature of false ceiling tiling's, toiletry fitting etc.

Pse advise whether the improvement is allowed for investment u/s.54f.

CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)
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18 February 2010 Improvement expenditures are not allowed u/s 54F. However, if you have not taken possession of the same house property then you can claim those improvement expenses in construction cost.

But if you have taken possession of the HP then those improvement expenses will be disallowed.

Regards!!!

Nutan

Nutan (Querist)
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18 February 2010 But what would be the situation if it is a second sale and the party buying the property has yet to take the possession of the property.

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