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SURESH KUMAR.P (Querist)
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15 December 2009 I have made reinvestments in residential house twds fund arising from the transfer of the original asset. Relief for rollover of investments asset as per Act is reinvestments made before 3 years from transfer of original investment asset and 1 year as per New Direct Taxes Code. I have paid full amount(Cost) of residential house to X construction company within 3 year (as per Act) & 1 year (as per Code) before the beginning of the financial year in which the transfer of original investment asset was made. But in case the residential house to be built by the X contribution company is not completed within 3 years or 1 year as case may be and not handed over to me, Am I eligible for relief for rollover of investments asset? In other words can you please clarify whether I am still eligible for relief for rollover of investments asset even if the work is not completed? Is it enough if i had made the investment, in financial year and don't worry about the completion of construction? Please advice? Thanks in advance

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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15 December 2009 1. You have to clarify whether you have purchased the house or you have given construction contract to the company.
2. If you have purchased it, then payments made 1 year prior to transfer and 2 years after such transfer are eligible for exemption u/s 54F.
3. In case of construction 3 years period is calculated from the date of transfer.
4. DTC is not relevant.
5. Exemption is available even if construction is incomplete. The word "purchased" and " owned" are distinct.
Section 54F is available in case of house is "purchased".Ownership & completion is not emphasised.

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