Festive Savings Are Here. Get 10% OFF on All CCI Pro Plans. Subscribe Now!

Requesting clarification on Section 54f for property purchased in 2013 under 'subvention scheme'

457 views

Save Share

Join Us Follow Us Add as Source

Kuiln

self

25 Points Posted on 02 July 2023

Humbly requesting clarification/even filing help on the following situation (timeline below):

2013 - sale agreement to buy apt in Mumbai, 80:20 scheme, I paid 20% down, rest builder pays EMI to bank.

2016 - project delayed, 2019, builder bankrupt & we start paying EMIs on his behalf.

2022 - Project back on track, possession in a year from now. I realize capital gains of 1cr and repay principal to bank of the same as payment towards purchasing apt.

Can I claim capital gains deduction under section 54f?

Replies (5)

Quick Summary

This discussion seeks clarification on whether capital gains tax deduction under Section 54F can be claimed for a Mumbai apartment purchased in 2013 via an 80:20 subvention scheme. The original buyer paid 20% down, with the builder covering EMIs until 2019 when the builder went bankrupt. The buyer then started paying EMIs, and with possession expected in a year, they are now facing capital gains and have repaid the principal loan. The core question is about eligibility for Section 54F, especially considering the unique payment circumstances and the timing of capital gains realisation versus loan repayment.

CA Aakarsh Jain

4330 Points Posted on 02 July 2023

Hi Kuiln, I'll be happy to help you out. Please check the details in your inbox so that we can discuss it.

Kuiln

self

25 Points Posted on 02 July 2023

I am looking for an open discussion on this forum, not PMs. Once we get bit deeper into the details of the discussion, I would be able to decide whom to go with in terms of hiring as CA to help out.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121543 Points Posted on 02 July 2023

Yes, eligible

rama krishnan

5751 Points Posted on 02 July 2023

Capital gains? have you sold any capital asset? in your query, you have stated only about the purchase of apartment and payments made in that regard. you have not stated anything about sale transactions.

Aashok Kumar Sharma

Finance/Compliance Consultant

75642 Points Posted on 08 November 2026

Sec 54 timelines (sale in 2013):

• For a sale in 2013, the new house had to be purchased within 1 year before or 2 years after (by 2015), or constructed within 3 years (by 2016), and unutilised gain deposited in the CGAS before the ITR due date.

• If the timelines weren't met, the exemption isn't available. For a CGAS deposit not utilised within 3 years, the balance would have been taxable in 2016-17.

• At this point (2026), reassessment for those years is time-barred. If an old CGAS account remains, closing it needs AO approval (Form G), and the unutilised amount was taxable in the expiry year (now likely beyond reassessment limits; the AO may still require the tax for closure approval).