Capital gains exemption u/s 54

Others 326 views 4 replies

prathyusha

articles student

57 Points Joined April 2014

In case the date of transfer is 11/02/2015 and invested in the construction of residential dwelling whose construction is started in the year 2004 and still the process of construction is going on and will be completed by 2016.As per the provision of section 54 the construction is to be completed within 3 years from the date of transfer.

can we get exemption even though the construction is started in the year 2004?

Read more at: /forum/details.asp?mod_id=335654&offset=1

Replies (4)

CA Sukriti Jain

Senior EY

1184 Points Joined September 2009

yes exemption is available. check -/forum/details.asp?mod_id=335654&offset=1

Rashi Bajaj

752 Points Joined January 2012

Deduction is available for construction upto 3 yrs from date of transfer, i.e. till 10/02/2018.

Yash

Student CS

32 Points Joined August 2015

Section 54
Exemption for residential house

LTCG(Long term capital gain) on transfer of residential house shall be exempt if the amt. of capital Gains is utilised for purchase/construction of new residential house within the following time limit.

TIME LIMIT
The new house should be purchased within 1 year before the date of transfer or 2 years after date of transfer or it should be constructed within 3 years of transfer.

SCHEME OF DEPOSIT
If the new asset is not acquired upto the due date of filing return then the assessee should deposit the desired amount in a special account opened in accordance with capital Gains accounts Scheme, 1988.
The deposit amt. is not utilised then the exemption allowed shall be withdrawn.

AMT OF EXEMPTION
1) Amt. of only Long term Capital Gains
2) Cost of New Asset/Amt. deposited

LOCK IN PERIOD
The new asset should not be transferred within 3 years from the date of its purchase. If the new asset is transferred within 3 years then the exemption will be withdrawn.

ELIGIBLE ASSESSEE
Individuals & HUF
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