As per the provisions of the act, for availing the Capital Gains (CG) exemption the tax payer should , Within a period of one year before or two years after the date of transfer of old house, the acquire another residential house or should construct a residential house within a period of three years from the date of transfer of the old house.
My query is suppose the constructuion of a residential flat was completed in the month of August 2016 and an old flat was sold in the month of July 2017. Whether the CG exemption could be availed. The first part "within a period of one year before......the date of transfer" seems to be applicable only for acquisition of the house property and not for the construction. In other words, in respect of construction it has to be necessarily after the transfer of property, where as in case of acquisition, the same can be even prior to transfer of property. In the particular case, the construction got completed one year before the transfer. In such a case whether the exemption is allowed. Your views pl.
CAclubindia
