hi suppose an individual has sold his residential property and wants to invest the proceed in construction of residential property. what is the time limit to claim the deduction and should he keep the proceeds in separate bank account or can he just make term fixed deposits and use the fund as and when needed.
please clarify
thanks
shashi kiran
Menu
Section 54 for construction
Replies (2)
Quick Summary
- THREE years from the sale of the residential property.
- Should be deposited to CGAS, 1988 acc.
Sec 54 for construction:
• If you sell a residential house and construct a new one within 3 years from the date of sale, Sec 54 applies. Construction can start before the sale. Courts allow costs incurred before the sale if construction completes within 3 years after.
• Land cost for the new construction: if the land is bought within the window (1 year before or 2 years after) as part of construction, it's included. Land bought much earlier isn't.
• Deposit unutilised gains in the CGAS before the ITR due date.
Recent Topics :
- TDS ON IMMOVABLE PROPERTY - PURCHASE FROM NRI &
- Query to Tax Garden tax consultant
- Subject: Urgent Assistance Required – TRACES
- Claiming business re-imbursements while filing GST
- E-waybill 14 Digit Numbring
- Non filing of MGT-14 for MD appointment
- HUF AFFIDAVIT vs HUF DEED - REQUIREMENTS & STA
- Free Pre-Filing Tool to Match GSTR-3B vs GSTR-2B (
- MR AASHOK KUMAR SHARMA
- NIC codes for FIRMS registration of entity
Related Topics :
CAclubindia
