Saksham Garg (Article Assistant ) (115 Points)
04 October 2018Whether 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.
prasad Nilugal
( GST Practitioner & Accounts )
(14196 Points)
Replied 04 October 2018
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 .
Uday Rathi
(133 Points)
Replied 04 October 2018
Ankita Chachan
(practitioner)
(548 Points)
Replied 04 October 2018
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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