11 October 2012
one of my client has income from long term capital gains from sale of house property sold on 11/12/2009 & he entered in to an agreement to buy a new proprty on 6/12/2009 and paid advance on 6/12/2009& paid the entire consideration & got the property registered on 10/8/2010 but due date for furnishing the return is 31/07/2010 weather he is eligble for the exemption U/s 54
11 October 2012
Assessee must have deposited the same in capital gains account scheme before the due date of filing return of 31st July.If he has not done then he is not eligible.
But there are decisions available under 54 F wherein if the assessee can prove that these funds were kept in a separte bank account and wre ultimately used for purchase of property argument for eligibility can be put forth . Decisions have been given on the groung of mere technical lapse exemption cannot be denied.
According to section 54 one can claim for LTCG within 3 years (in the case of construction of new house) and 1 year before or 2 years after(in the purchase of new house), provided that sold house and purchased house both should be residential house, from the date of transfer of assets.
So in your case if this property would be residential and new property would be also residential house then you can claim under section 54.
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