Section 54 of income tax

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Querist : Anonymous

Querist : Anonymous (Querist)

04 December 2012 The property is purchased in April 2012 which is still getting constructed and no possession taken but EMI started. When the client sells his old house in April 2013, whether he can claim benefit of paying capital gain tax showing the under construction property which he has already purchased. If answer to earlier question is YES then upto what time frame he can avail that tax benefit?

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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04 December 2012 yes, He can very well claim the exemption u/s 54. property was purchased in the month of sale of property.
Even if possession is not taken, capital gain exemption can be taken in this year.

[2012] 137 ITD 229 (MUM ITAT.)/[2012] 24 taxmann.com 11 (MUM.) [13-06-2012]
Kishore H. Galaiya Vs. Income-tax Officer, Ward 8(2)(3)

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@VaibhavJ

@VaibhavJ (Expert)
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04 December 2012 Hi

Within a period of three year contruction should get complete from the date of sale transaction to claim exemption u/s 54.

Thanks//Vaibhav
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