I have a little bit of doubt regarding Sec 54 F of the I.T Act. I am trying to portray my doubt in a way of Real Case study.
Mr A. was holding a land in his name from the year 2005.
Apart from the above asset, he was holding a Self occupied Property from 1999 onwards.
Now in the year 2013, he sold the above land and earned Income from Capital Gain for the same ( Say, 5 L).
Now to exempt the same gain, he will have to invest the same and claim under Section 54 F.
Now the problem is, that apart from the above 2 Assets , he has also made an investment in a property in the year 2010, i.e. Paid Rs. 10 L as "Construction of the New Property X".
Section 54 F says that "To avail the benefit of Sec 54 F, A New Residential Property to be purchased within 1 year before the date of transfer or 2 years after the date of transfer"
Now, the question is whether Mr A can deposit the Capital Gain arose on the Sale of Land (i.e. Rs. 5 L ) on the "Construction of the New Property X"
(The amount paid on the "Construction of the New Property X" has still not been handed over to Mr A for the possession.)
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