My client has sold a long term residential premises in current year with Long term capital gain. He booked a residential under construction premises two years back on installment payment basis
He is going to pay the balance amount for the under construction premises in coming one year. My query is whether he can claim the exemption under sec 54 of the amount paid during last one year as well as the future payments in coming one year
10 January 2015
dear tarun, deduction can be claimed, if amount expended 1 year before or 2/3 year after for constructing/purchasing of residential house. so he can claim the deduction. but deed should be executed within 2 years.
12 January 2015
Thanks Nitin for your reply. As I have mentioned the assessee has booked the flat two years back and also the deed is already been executed two years back. Can assessee claim the exemption of the amount paid during one year ?
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