sec 54 deductions

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This query is : Resolved

asha fernandes (Querist)

29 July 2008 dear sir/mam please guide me on the following;
i have started construction of a residential house 2 years back. in the current year i sold 1 of my existing house. i completed the construction of my house in the current year.
1)so for sec 54 which says purchase within 1 year befor the date of sale does this construction completed before the date of sale is available for deduction.
2)if construction is completed after the date of sale, can i claim the entire cost of construction or only the amount spent after the date of sale.
thanks

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)

29 July 2008 1. In case the construction would have commenced within one yera before the date of sale in that case the investments would have been made in the stipulated period and u would have been elegible for deduction u/s 54. But, in ur case only amount spent in the stipulated period will qualify for deduction
2. In continuance to reply to 1st query, if the amount is spent upto 3 yrs after the date of sale and construction is completed by 3 yrs the deduction may be claimed.

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