Hi,
To claim exemption under section 54 and 54F construction of a new house property must be completed within 3 years from the date of transfer. Date of commencement of construction is irrelevant.
2.No restrictions.
3.No restrictions.
Section 54 capital gain account scheme
Though I have no touch in Income Tax act, for my own purpose of managing my Capital Gains I just gone through Section 54 and 54F and relevant case laws,notificatiions, and Circulars and this nice article. But the following doubts needs clarification. At first in the case of construction of a residential house, the time limit is 3 years. The doubt is this three years include bying the plot/land and construction or else is it compulsory that the plot/land should be purchased before 2 years and construction be completed in the next year or can purchase and construction be effected in the third year and completion off cousre before the end of 3rd year! 2. Is there any restriction in apportionment of the capital gains to be invested in plot/land and towards construction of the house? 3. Is there any restriction of the proposed construction of the house to meet the requirement such as a minimum plinth area or minimum of bed rooms or first floor or duplex like?
Asked 6 years ago in Capital Gains Tax
Section says construction must be completed within 3 years from the date of sale..they don't bother whether you already have any plot or you are going to purchase any plot you just need to get a house constructed in which you can live after 3 years.
There is no such restriction or requirement to invest so much amount in land or it should have so many bedroom nothing like that.
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Thank you
Hi
1.Under section 54 and 54F construction should be completed in 3 year from date of transfer.
2. No such restrictions
3. No such restrictions
Hi
1. The construction should be completed within 3 years from the date of transfer.
2. There is no restriction on your remaining questions.
Regards,
Nikhil.
Hi
1. You may buy the land / plot after 2 years and construct before 3 year time frame.
2. No
3. No. It should be a residential house where it could be proved that one can reside. There are no defined minimum construction requirements.
Hi,
- In case of construction, period is 3 years from the date of transfer. You can buy and construct in third year also.
- There is no restriction on investment in land and construction.
- No restriction on area as well.
Thanks
Hi,
1. Three years includes buying plot and making construction. it is not compulsory that the plot/land should be purchased before 2 years
2. There is no restriction on apportionment of capital gain towards plot and construction of house.
3. There are no minimum requirements prescribed. House should be in liviable condition as per general paralance.
Hi
1. Construction to be completed within 3 years from date of transfer.Yes you can start construction in 3 rd year also.
2. No such restriction
3.No restriction.
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