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Cash Payment to Labour for construction work

This query is : Resolved 
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(Querist)
10 January 2026 Dear Expert,
My clint sold property (One Home) in may 2024 of Rs 65 Lakh and he used this amount in construction new home and get the exemption U/S 54 of Income Tax. He mostly make payment in cheuqe for material but he pay Some cash Approx 5 Lakh to labour for construction work which is actual. Now My Question is can we consider cash expenses for labour work for construction under Section 54 (In Constructon of New Property) of Income Tax.

Thanks in Advance kindly give me suggession soon. if answer in yes than which section allow this.
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Dhirajlal Rambhia

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Dhirajlal Rambhia (Expert)
11 January 2026 Yes, if he has obtained GST paid invoice for labour charges paid in cash.
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