Exemption u/s 54

Tax planning 1410 views 13 replies

PRAMOD NAIK

SR MANAGER ACCOUNTS

25 Points Joined April 2014

i have purchase flat in 1994-95 with agreement amount Rs.3,20,000/- now in Feb 2014 we have sold that flat to Rs.54,00,000/-.

we have got a very good investment apportunity so we have invested full 54 lacs for purchase of flat in march 2014 (pre launch )

since builder has some technical problem due to which he is not ready to register the sale document.

he is saying he will register the document with in next six month.

we have given 54 lacs through our bank account to builders name..

can we claim exemption us 54. even through we have not entered in to sale agreement.

under this circumstances whether i can show this investment in FY 2014-15 also.

to get exemption benefit.

kindly guide me.

Replies (13)

SAURABH NENE

Chartered Accountant

226 Points Joined June 2009

For claiming exemption condition is that new house should be purchased within 2 years or constructed within 3 years. In your case it will be treated as purchase. So ensure that you get the sale deed executed and possassion within 2 years from date of sale of the old one. For now you can claim exemption.

shikhar

LEARNER

1394 Points Joined August 2009

Hello,

As per section 54, you can claim deduction for capital gain by investing in new asset within a period of 1 year before sale took place , and 2 year after (in case of purchase) & 3 year after (in case of construction)

thanks

PRAMOD NAIK

SR MANAGER ACCOUNTS

25 Points Joined April 2014

Dear Saurabh & shikhar,

thanks for the guidence.

i have holding one more residential flat in mumbai.

even through we can claim exemption u/s 54.

and builder is providing Payment receipt whether we can claim exemption us 54.

Mihir

Wealth Manager

5293 Points Joined December 2008

Yes, you may claim exemption u/s 54.

Jayesh

khamgaon

27 Points Joined April 2011

Yes u can claim exemption u/s 54

latesh narula

student

24 Points Joined May 2011

You can claim by part performance of contract under immovable property act .. (On agreement / power of attorney also ) provided that u .hold the possession.of the same

latesh narula

student

24 Points Joined May 2011

And yes you can claim u/s 54

A-G-V

Student

571 Points Joined January 2009

Yes you can claim.. No probs

rajeev

nnnone

224 Points Joined February 2012

Yes u are fully exempt if you purchase it within 2 years or construct within 3 years.

Manikandan R

Britannia

25 Points Joined September 2009

In both d cases u can claim exemption u/s 54.

Raja V

Articles

24 Points Joined August 2008

You can claim exemption u/s 54 in your case for the AY 2014-15 itself as you made the investment. Ensure that you made a sale agreement atleast before you file your return.