Capital gain - exemption under sec 54f

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 February 2013
The case is a –
House property, being Apartment is bought on a bank loan.
-----The Sale deed for the flat is registered on may 2011.
-----Date of possession (i.e hand over by builder) is 24 Feb 2012.
A Land (long term) is sold in Feb/march 2013.
For the capital gain arising from the sale of land -
1) Can exemption be claimed under section 54F in FY 2012-2013 against purchase of the flat.
2) For the purpose of capital gain what will be date of buying of property – will it be date of possession of the flat or date of registration of under construction flat?
please guide.

Regards

sudarshan

sudarshan (Expert)
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20 February 2013 1.If the apartment was purchased within one year of sale of land 54F can be claimed.

2.purchase is different from construction. The section uses the word purchase so it should have been purchased (finished one)

Querist : Anonymous

Querist : Anonymous (Querist)

20 February 2013 Thank you.
But sir my question is in case of apartments where the sale deed is executed much before the actual date of hand over of apartment, which date is to be considered as date of purchase of apartment.

In this case, will it be may 2011 or feb 2012.The assesses gets the actual possession of the house only after an year of registration of sale.

sudarshan

sudarshan (Expert)
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20 February 2013 the purchase should happen within 1 year of sale of land. if flat was registered and constructed within 1 year of sale of land it will be eligible.

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