date of acquistion of under contruction property, Income Tax

[jatin Gandhi]

One of my relatives has sold a land and is planning to purchase a under construction house to claim deduction u/s 54F. The agreement for the new house would be executed immediately and 100 percent payment would be done upfront. I have following queries related to the same:

1) In case if the person is already holding 2 properties, then is it feasible to sell one of the house and claim deduction under section 54 and 54 F simultaneously.(This is to be done as there is condition to claim deduction u/s 54F that the person should hold not more than one property on the date of claiming deduction u/s 54F)

2) If the person decides to sell the new house after 3 years, then would the date of acquisition be date of agreement of new house or date of possession.

3) in case if the builder fails to give possession within 3 years from the date of original transfer of plot, then would the capital gain deduction claimed under section 54 F be added back

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above issue? If not please inform.