Section 54f, construction of new house after demolishing old house

Subject to construction of new house completed within 3 years from transfer of original asset.....

Thanks Sir.

Land + house bought before completion of 2 years from the date of transfer of capital asset.

But only about 11 months left until the completion of 3 years from the date of transfer of capital asset.

So have to complete construction and obtain completion certificate within such 11 months?

Is there any other away?

From 54F:

"and the assessee has, within a period of one year before or two years after the date on which the transfer took place purchased, or has within a period of three years after that date [constructed, one residential house in India] (hereafter in this section referred to as the new asset)"

1. New asset (land + residential building) purchased within 2 yrs. from the date of transfer of original capital asset. Deduction claimed.
2. Now want to demolish existing old residential building and construct new residential building.

• And that also needs to be done within the said 3 yrs. time limit from the date of transfer of original long term capital asset?

From 54F:

"(3) Where the new asset is transferred within a period of three years from the date of its purchase or, as the case may be, its construction, the amount of capital gain arising from the transfer of the original asset not charged under section 45 on the basis of the cost of such new asset as provided in clause (a) or, as the case may be, clause (b), of sub-section (1) shall be deemed to be income chargeable under the head "Capital gains" relating to long-term capital assets of the previous year in which such new asset is transferred."

• What is the meaning of "its construction"?
• Does it mean that, if the existing old residential building is demolished and a new residential building on the same plot of land gets constructed, deduction would be disallowed?

If you want to demolish and contruct new house, 11 months is the time left. But if you want to renovate existing house......... no time limit !!!

Thanks for the reply Sir.

• But after 3 years from the date of purchase of new asset (land + residential building), I can demolish + construct or, sell that asset and deduction won't be disallowed, right?

Right, the restriction is only for 3 years from purchase of new house property.

Thanks again Sir for all the clarifications... YOU ARE THE BEST! 

Thanks.........

God is Great........