A person has purchased the land from DDA and started paying instalments way back from 8 years (2002). the allotment is due in 2010.
he has sold one of the residential property in march 2010. Can he take exemption claim for the amount invested in abovementioned scheme under section 54.
Amit Chadha
Dear Sir,
U have mentioned that Possession of LAND is due in 2010, which was purchased by assessee in 2002.
But Sec 54 requires assessee to purchase /construct a House & acquiring Land alone will not do...
Assesee can construct a House on an existing Land for the purposes of Sec 54. In this case Cost of Land cannot be treated for the purposes of Exemption u/s 54 in views of the Depart circular & couple of HC judgments that in such schemes acquisition is treated at the time when first installment is paid.
So in the present case assesee can construct a House on this land by March 2013 & till that time amount should be deposited ina CGA scheme.
T R SOOD & CO
New Delhi
CA Inter
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