Exemption U/s 54F

This discussion clarifies whether paying a substantial amount to a builder for an under-construction flat, with possession expected in three years, qualifies for exemption under Section 54F. It's confirmed that such an investment can be eligible for capital gains tax deduction, provided certain conditions are met. Crucially, the entire consideration must be reinvested, or funds transferred to a Capital Gains Accounts Scheme before the ITR filing due date. Case law suggests that even if possession isn't received, if substantial construction is complete within three years, it can be considered an investment for exemption purposes.