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Anonymous
in Tax and Accounting Law
Asked October 02, 2017

LTPG Tax exemption

  • 2 Answers
  • 252 Views

(1) Sir, I know about section 54 and 54F so please do not repeat in reply. Kindly see my case deeply. (2) I do not own any house till now. I booked a flat in Nov 2013 for costing 34 lakh + service tax. Agreement was done in Nov 2014. Appox 35 lakh(incl 17 lakh loan of bank) has been made in installments upto Apr 2017 (last payments of 3lakh, 6lakh and 4.25 lakh were done in Feb, Mar and Apr 2017 respectively). Possession was due in May 2017 but project is late so it may take one or two years more. Meanwhile (3) Keeping in view to arrange fund I sold a residential land for 16 lakh in Apr 2017 which was purchased for 1.25 lakh in Apr 2004 which is attracting appox 13 lakh as LTPG. I don't have any money to invest in Bonds or to keep in Banks in property gain accounts as I have made payments to builder for flat. (4) Now my question is, Can I get exemption on LTPG Tax arised due to sell of land if I got possession of flat within one or two years or before Apr 2019. As per 54 or 54F construction is being done within 03 years of selling a Long term asset. OR what do do kindly suggest. (5) I am bearing a big loss due to flat and if I have to pay LPTG Tax on sell of land it will be a great loss to me. Please Help !

Answers 2

 

 

 

Dear Sir/madam,

If we look at one of the basic criterias to not to attract section 54, is that you should not be the owner of any other residential property on the date of transfer. So, ideally if your house gets constructed within a time frame of 3 years from the date of such transfer, you are safe. Now, the delay in this case is not caused by any means attributable to you, it is the sole responsibility and liability of the builder who is causing such a delay. Thus, it shouldn’t be a problem.

Agree Comment 0 Agrees over 3 years ago

 

 

 

 

Dear Sir/madam,

If we look at one of the basic criterias to not to attract section 54, is that you should not be the owner of any other residential property on the date of transfer. So, ideally if your house gets constructed within a time frame of 3 years from the date of such transfer, you are safe. Now, the delay in this case is not caused by any means attributable to you, it is the sole responsibility and liability of the builder who is causing such a delay. Thus, it shouldn’t be a problem.

Agree Comment 0 Agrees over 3 years ago

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