Interest in case of not allowanceof exemption u/s 54f

This query is : Resolved

CA.Monik Dedhia (Querist)
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06 July 2012 Dear Sir,

My client have sold a piece of land and want to go for exemption u/s 54F by paying advance booking amount before the due date u/s 139(1) i.e. 31th july 2012.

But he is not sure that he will get possession letter of flat purchase within period of 2 years.( However he will get himself being registered).

In case of non availability of possession, will the exemption u/s 54F get revoked?

whether there is a case that after 2 years A.O. charged him LTCG Tax along with "INTEREST".

Would you recommend to go for Booking of flat and claim exemption.

Regards,

Ca. Monik Dedhia.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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06 July 2012 Date of possession is relevant for computing time limit in view of the decision of Andhara Pradesh high court ,u/s 54, in the case of CIT V Ms. Shahzada Begum (1988) 173 ITR 397.

CA.Monik Dedhia

CA.Monik Dedhia (Querist)
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09 July 2012 Thank You Sir,

But can you tell about interest part , in case we don't get possession within time.

should we pay Tax amount along with interest component or not.

Regards,

Ca. Monik Dedhia.

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