Capital gain account money utilization
Under section 54 we get 2 years for buying residential house and 3 years for construction. My question is can we buy plot after two years and construct house before 3 years ? Please answer carefully as I posted my questions previously but the answers not correct
Asked 2 months ago in Capital Gains Tax from Delhi, Delhi
- Yes you can buy the plot after two years subject to completion of construction should be completed before 3 years from the date of transfer. There were cases already decided in favour where the assessee purchased plot before the date of transfer and completed construction within 3 years from the date of transfer.
- In case of construction it is 3 years and it is no where mentioned in the section that plot for construction should be purchased within 2 years which is a condition for ready to move in flats/apartments.
My apologies for your past experience.
Yes, you can buy plot after two years but you have to make sure that construction gets completed before 3 years.
Yes, you can do that but ensure that the construction is completed before 3 years.
Sir section 54 says that you have to construct your house before completion of 3 years it doesn't matter if you build it in 1st year or build it in last 6 months you just should own a constructed property if you are taking more time than 2 years.
So as per your query you can purchase the property and construct it in 3rd year but in that case you need to keep your money in the account which is for construction of property and not purchase and also if you don't get it constructed within 3 years from the date of transfer then you need to pay tax on capital gain exempted at that time.
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Hope you are doing well !
Apologies for your past experience.
Yes, you can buy plot after two years but make sure that the construction is completed within a period of three years.
Thanks & Regards,
Yes, you can do the same .
Yes, you can buy plot after two year and construct house before three years from the date of sale of old house.