Exemption u/s 54F

In my opinion,

The section requires the assessee to build the house within 3 yrs from the date of transfer of his residential house. The house must be complete within the time period granted.

The facts point out that the assessee will not be eligible for any exemption.

The amount however will be taxable in the year of transfer itself. The deposit of money with builder can not be treated as equivalent to the CGDS scheme deposit, hence the amount of CG should have been taxed in the A.Y 07-08 itself

In my opinion, At the year of payment to the builder will be consiered as step toward the construction of house. therefore exemption will be granted. as the period of 3 years will end on 23-05-2009, the maount of exemption granted earlier will be taxable only after the above said date as LTCG of current AY