Exemption u/s 54f

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Priyanka.S (Querist)
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05 February 2018 A client has started construction before 1 year of transfer of Non-Agricultural Land.Can he claim exemption u/s 54F regarding investment made during pre-transfer period?

Sumeet

Sumeet (Expert)
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05 February 2018 Exemption under section 54f can be claimed for investment made within the period of one year before transfer. For example if transfer is made on 01.05.2017, investment made in construction after 01.05.2016 will be allowed.

Priyanka.S

Priyanka.S (Querist)
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05 February 2018 Can you suggest me any case law for this?

Priyanka.S

Priyanka.S (Querist)
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05 February 2018 As per the provisions, Construction of 1 residential house property should be made within 3 years after the date of transfer.Can you please tell me on what basis,you gave the answer?

Sumeet

Sumeet (Expert)
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05 February 2018 Please refer to section 54f in bare act, it says "the assessee has, within a period of one year before or two years after the date on which the transfer took place purchased, or has within a period of three years after that date constructed, one residential house in India, the capital gain shall be dealt with in accordance with the following provisions of this section". The three conditions i.e.
1. One Year before the transfer OR
2. Two Year after the transfer purchased OR
3. Three Year after the transfer constructed.
are separated by OR. Hence investment made within one year of transfer will be eligible for exemption.

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