Ltcg tax-exemptions

Tax queries 279 views 2 replies

ARUNA SEN

House wife

25 Points Posted on 01 October 2015

Dear Sir, We sold our residential flat on 30-11-2012 and got Long Term Capital Gain and the money was invested in purchasing a flat of an under construction project(under Group Hosing of about 2000 flats in Noida in U.P. We have paid 95% of the cost. But the project is delayed and not in a position to give possession within 3yrs from the date of sale, as the Builder are claiming that this delay is due to NGT and other Government issues. Is there any grace period for giving LTCG Tax beyond 3 yrs, for this type of delay, due to the Government Policy? It is known, exemption u/s 54, allottee of DDA and cooperative societies gets the extension beyond 3yrs. Please confirm our case. Aruna Sen

Replies (2)

Karthik.V.Kulkarni

Chartered Accountant

594 Points Posted on 01 October 2015

Hi Aruna,

In your case the applicablity of Sec 54 is lawfull and you can claim exemption under the same. As you have paid substantial amount towards purchase of property and only leagal title is pending you can claim exemption u/s 54. For exemption u/s 54 leagal title will not not be considered in cases where substatial portion of purchase consideration is paid and the delay is due to some delay in approval processess.

Regards

Karthik V Kulkarni