section 54 Capital Gain

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CA Neeraj Bhanwariwal (Querist)
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30 January 2010 In section 54 the property has to be purchased 1 year before and 2 yrs after the date of transfer and the construction must be completed within 3 yrs. from the date of transfer and the date of commencement is irrelevant.

So i would like to know that if the developer construct the house and than give to us then that developer construction period also counted in the above criteria?????????

plz give me the full explanation as soon as possible on that...

Thanks!

Neeraj Bhanwariwal
e-mail: bhanwariwal.neeraj@yahoo.in
bhanwariwal.neeraj@gmail.com

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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31 January 2010 The act does not say that construction should be completed with in 3 years from the date of transfer. The word used in section 54 (1) is "constructed".
In view of that, the assessee need not complete the construction of the house and occupy the same within the specified period and it is enough if the assessee establishes that he had invested the entire capital gains with in the stipulated period.
Citation:- CIT Vs Sardarmal Kothari (2008) 302 ITR 286(Mad).Decided u/s 54F.

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