Deduction u/s 54.

Ok guys i have a small problem,

I relative of mine has made a sale of residentia flat on 10/11/15.

Also he had purchased a property in 2009 and has been paying loan installments since then.

Last Installment was paid on 15/11/15 and ownership was also passed to him on the said date i.e 15/11/15

now can i take benefit of the Exemption u/s 54 for the 1 year period prior to the sale of the residential property.

(lets say that EMI paid from the period of 10/11/14 to 15/11/15 was 500000 then can i claim it as exemption?)

I know the rule is that the property should be constructed withing 3 years but are there any provisions for this? 

Replies (1)

Dear Saurabh

As already stated above that the property purchased in 2009 and further if we read section 54 of the Act it clearly says ‘purchased’. Conclusion we cannot claim benefit of exemption under said act as per the stated facts.

Any contradictory view please let us know.

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