Exemption u/s 54

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Meenakshi Jaiswal (Querist)
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31 October 2011 I have sold a House property chargeable under IT act last month.
I wanted to invest the LT-CG gain in another HP. The new property will be handed over to me in 46 month as per builder plan.
I wanted to know whether the Down payment which is more than LT-CG (and 95% of the booking amount)will entitle me to claim exemption u/s 54 if IT act. Also if you can advice me on this.

Thanks

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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31 October 2011 It is a vexed issue. However, courts have decided such cases in favour of assessee. One such case is given below for your reference.

If assessee has acquired substantial domain over new house and has made
substantial payment towards cost of construction within a period specified u/s.
54, then assessee can be said to have complied with requirements for claiming
exemption u/s 54 even if construction of building is not completed within a
specified period.
Citation:- CIT vs. Hilla J.B. Wadia (1995) 216 ITR 376 (Bom)).

Meenakshi Jaiswal

Meenakshi Jaiswal (Querist)
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31 October 2011 Thank you sir.

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