EXEMPTION UNDER SECTION 54 FOR UNDER CONSTRUCTION FLAT
This query is : Resolved
30 July 2025
ASSESSEE SOLD A RESIDENTIAL FLAT-A IN JAN'25 FOR 1.5 CRS.HE HAD BOOKED ANOTHER UNDER CONSTRUCTION FLAT-B DURING 2021, FOR WHICH HE HAS PAID 1 CR TILL NOW AND WILL GET POSSESSION OF THE SAME IN FEB'2026.
WHETHER HE CAN CLAIM EXEMPTION OF 1 CR UNDER SECTION 54 FOR THE SAME AS HE IS GETTING POSSESSION WITHIN 2 YRS OF SALE OF FLAT-A.?
WHETHER HE CAN CLAIM EXEMPTION OF 1 CR UNDER SECTION 54 FOR THE SAME AS HE IS GETTING POSSESSION WITHIN 2 YRS OF SALE OF FLAT-A.?
31 July 2025
Whether agreement was registered in 2021? whether exemption was claimed for Rs. 1 Cr earlier?
Whether the project is still under construction?
Whether the project is still under construction?
01 August 2025
AGREEMENT NOT YET REGISTERED WILL BE DONE IN FEB'26.NO EXEMPTION CLAIMED FOR THIS AMOUNT OF 1 CRS.THE PROJECT IS UNDER CONSTRUCTION AND POSSESSION WILL BE GIVEN IN FEB'26
01 August 2025
Yes, you can claim it in FY 2024-25; provided you pay the amount of 50 lakhs (if new purchased flat is of 1.50 Crs.) before filing return; or park it in CGAS. 1988 account before filing return. He cannot claim exemption for the advance amount paid in 2021.
01 August 2025
The amt. has been paid in installments from 2021 till 2025 till date..so what's the criteria for determining if the same will be allowed or not as deduction.
01 August 2025
You can claim only the amount paid from January 2025 till the date of possession (provided possession is received within three years).
03 August 2025
Sir if the Agreement was done in 2021 but registry is not yet done but will be done during Feb'26 then in that case will the assessee be able to claim the amount paid after January'2025.
Also, is it not possible to claim the amount paid before January 2025 as the same has been paid for the Flat which will completed and handed over on April'2026.
Also, is it not possible to claim the amount paid before January 2025 as the same has been paid for the Flat which will completed and handed over on April'2026.
03 August 2025
1. Yes,
2. No, not eligible for any payment done before the sale of original property.
2. No, not eligible for any payment done before the sale of original property.
19 August 2025
Sir will the assessee not get the benefit of the Case Law "CIT vs J R Subramanya Bhat" wherein the HC Stated that Date of Commencement of Construction is irrelevant and it may be commenced even before the transfer of the house.Construction of the House should be completed within 3 years from the date of transfer.
19 August 2025
Yes, for that you have to go for appeal and try luck.
25 September 2025
Good luck...
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- Stamp Paper for partnership firm change new income tax 2025
- Capital gain from sale of house property
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- TDS on Purchase of Immovable Property by NRI from NRI
- FORM 26A APPLICABILITY
- SFT Cash Deposit in Current Account
- Annual return in Gst
- When TDS on GST applied
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
