I have a querry regarding the period during which the ne consideration is to be invested for consytruction of new house u/s 54F. as there are no doubts regarding purchase period so that point is not touhed upon.
U/s 54F an assessee has to construct a house within three years from date of sale. In one of the cases it was held that cost of construction also includes cost of land on which construction is undertaken. In another case it was also held that the time limit is for completion and not for commencement of construction i.e. constucrtion may even commence before sale of asset.
Now questions are:-
1. If the assessee has undertaken the construction before sale of trfrd asset and it is completed within contemplated period, whether the cosntruction cost shall be eligible to deuction u /s 54F
2. If yes whther construction cost incurred prior to date of trfr. of asset would also so qualify.
3. If yes and as stated above that construction cost includes cost of land also, whether land purchased prior to trfrd. asset would also form part of cost of construction.
please help to resolve the query
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