Dear Folks
My client has sold his house property few days back for a particular sale consideration and the TDS has been deducted by the buyer @ 1% under 194-IA. He has already finalised a piece of land for a sale consideration in excess of the sale consideration received from the buyer of the house property. Now he is going to put the additional funds required for the registration of land and complete the process in 1-2 months time. Thereafter he is going to start the construction of a house in 6 months to 1 year time. However he is definitely sure of completing the construction before the 3 years period stipulated u/s 54. The query is
a) When we submit his tax return for the previous year 2014-2015, by end July 2015, can we claim the deduction u/s 54 for the entire sale consideration?
b) If so, can we claim the refund of the 1% TDS deducted?
Thanks
CAclubindia
