Whether deduction u/s 54 is available if Construction of new house is started before selling the old house? say construction is started 6 months before selling the old house.
As per Income Tax construction should be completed within 3 years but the Act is giving no reference on when construction should be started.
I thinks its construction of property within period of 3 years form the date of transfer / sale of property , it means you have start construction only after the sale . please confirm with others also .
Deduction is allowed in your case even if the construction is started before selling of any property.
Within a period of one year before or two years after the date of transfer of old house, the taxpayer should 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.
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