Section 54F for under construction flat

Tax queries 157 views 3 replies

Dear Sir/ Madam,

I need your views on this example.

Under construction flat registration date from builder = 17 dec 2021 and posession date = 28 Dec 2023 for cost price = 1.5Cr.

Claimed section 54F in ITR2 for FY22-23 as Mutual funds were sold and amount paid to the builder as a part of construction linked plan. 

Now for FY 23-24, the last installment paid to builder was on 26 Oct 23 and 10 Dec 23 as per AIS = 33L.  The mutual funds were redeemed on 5 Jun 23, 5 Sep23, 5 Dec 23, 5 Mar 24. Hence, Amount of deduction claimed = 1.60L

Need to claim Sec 54F benefit for FY 23-24 as the amount is paid to builder as last installment.

  1. What date to put in "Date of purchase/construction of new residential house". If we put Dec 2021, then we breach the rule of "Purchased: either 1 year before or 2 years after the sale of asset Or Constructed: within 3 years of sale of old asset"
  2. What date to put in "Cost of new residential house" - 33L (as per AIS for this year) or 1.5Cr.

Thanks in advance.

Replies (3)

you should mention the date of possession of the flat

Thanks Sir,

What cost to put in "Cost of new residential house" - 33L (as per AIS for this year) or 1.5Cr.

Originally posted by : Preti
opening quote Thanks Sir,
What cost to put in "Cost of new residential house" - 33L (as per AIS for this year) or entire purchased flat cost
closing quote

Any update on this query please.


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