Exemption u/s 54

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Querist : Anonymous

Querist : Anonymous (Querist)

11 September 2013 Mr X has sold the Residential House property in June 2013.Mr X has already given advances in slabs to developer for acquiring new Residential House Property from year 2010 & nearly 90% paid till March 2013 & shown as advances. Mr X taken possession & registration in September 2013 having possession letter from Developer dated September 2013. Does section 54 exemption will be availed or not for Long term capital Gain.

CA Pallav Singhania

CA Pallav Singhania (Expert)
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11 September 2013 No he can not claim Exemption U/S 54.

The transferor assessee should purchase a residential house in India within a period of one year before or two years from the date of transfer or construct a residential house within three years from the date of the transfer of the original house.

Querist : Anonymous

Querist : Anonymous (Querist)

12 September 2013 Thanks for your valuable opinion. But

If Mrs. X has paid amount to developers & in 2013 HP is transferred to Mr X & amount paid to Developer is shown as Loan in Mr X's Account. Then as it is newly purchased. can the exemption will be claimed?

CA Pallav Singhania

CA Pallav Singhania (Expert)
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13 September 2013 Yes, he can claim exemption U/S 54 then.. if the house purchased or constructed as per rules defined above...

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