Section 54f of income tax act

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 February 2012 Sir help me on this:

Assessee sold shares being Long Term Capital Asset for Rs. 10 lacs on 31.10.2011 earning Capital Gain of Rs. 9 lacs.

Assessee has started to constructed a new house on 01.04.2011 and costruction completed on 31.01.2012.

Construction Cost incurred up to 30.10.2011 Rs. 8 lacs and from 01.11.2011 to 31.01.2012 Rs. 5 lacs.

Can the construction cost incurred prior to 31.10.2011 (being the date of transfer of Shares) be eligible for exemption under section 54F?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

24 February 2012 As per the provisions of Section 54F, for construction, exemption is available subsequent to sale. However, this may not be the intention of law, but as the words say, we have to follow.

.
So, construction expenses incurred subsequent to sale of original asset can only be considered for exemption.
.

Querist : Anonymous

Querist : Anonymous (Querist)

27 March 2012 Thank u Sir

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok