Dear All,
Sec-54F says ............. "where, in the case of an assessee being an individual or a Hindu undivided family, the capital gain arises from the transfer of any long-term capital asset, not being a residential house, and the assessee has, within a period of one year before or [two years] after the date on which the transfer took place purchased, or has within a period of three years after that date constructed, a residential house (hereafter in this section referred to as the new asset), the capital gain shall be dealt with in accordance with the following provisions of this section, that is to say,-
(a) if the cost of the new asset is not less than the net consideration in respect of the original asset, the whole of such capital gain shall not be charged under section 45 ;
(b) if the cost of the new asset is less than the net consideration in respect of the original asset, so much of the capital gain as bears to the whole of the capital gain the same proportion as the cost of the new asset bears to the net consideration, shall not be charged under section 45:.................."
Query:
In case the investment is made by booking a residential Flat with a private builder or a Govt Builder (i.e. DDA, HUDA etc.) and the entire consideration is paid within the prescribed period (say within 6 months) BUT the possession of Flat is not handed over by the Builder within 2 years from the date of sale of original asset, what will be the status of Capital gain exemption claimed initially?
Please give your expert opinion with some case laws also.
Thanks in advance,
CA. Satendar Kumar
CAclubindia
