u/s 54F - Exemption from the capital gains arising out from transfer of capital gains other the residential house .
In this case the assessee has claimed the deduction before two yrs for "X" amount. Then he had entered in to a construction agreement with a flat promoter and paid the substantial amount also. The three yeara time will be expired in the forthcoming March 2011.It is expected that the construction will not be completed for next one year. The reason for delay is due to the ongoing problems between Builders and various government agency.
In this case where the assessee fulfills the conditions u/s 54F by making the substantial payments while entering the construction contract will be enough (or) failure in completion of the contruction will result deemed income of the assessee.
Thanks in advance
Menu
54F
As per my opinion construction should be completed whithin 3 years. If not completed then amount of exemption granted before will be taxable on expiry of 3 years.
Hi Pratik,
With reference to the following case law, CIT vs R.L Sood and CIT vs Hilla.J.Wadia,(related to Purchase.)
Merely because the builder failed to hand over the possession of the flat to the assessee with in the stipulated period, the assessee cannot be denied the benefit of the said benevolent provision. This would not be in consonance with the spirit of the particular section.
Where the same logic can be applied in this case also. Here the assessee has paid the entire amount to the Builder in the phased manner as specified in the agreement. The Entire amount has been claimed as deduction has been already utilized for the construction.
As i had said earlier it was the Builder who had messed the things up as he is facing the legal troubles with govt agencies.
Thanks
Recent Topics :
- ITC ON RENT
- GSTR-9 Table 8A Portal and Excel Issues
- IGST on Commercial Rental Income (Different State)
- Revocation of suo moto cancelled GST registration
- Is there any faculty taking chapterwise test in CA
- Late Fees and Interest
- HDFC Bank’s Bureaucracy: The Nightmare of Fl
- Running a CSC Center, Maha E-Seva Kendra, Setu Ken
- GSTR-9 Table 8A issue
- CA Inter Coaching institutes at Hyderabad
Related Topics :
CAclubindia
