Hi
The relevant date for the purpose of determining date of acquisition is the date of allotment which is Aug 16 in your case. This clearly is beyond the time limits specified under section 54 F. Hence, exemption shall not be available.
Can I take benefit of Section 54F
I have sold a plot which i bought in year 2014 on July 2019. I am thus required to pay LTCG. My Question is whether or not I can take benefit of Sec 54 F against this sale for purchase of residential flat from a builder which I had booked earlier on August 2016 and 95 % payment was done then only, however I have got possession letter from builder in May 2019 and registry was done in February 2020. thanking you in anticipation.
Asked 4 years ago in Capital Gains Tax
Dear Sir,
Hope you are doing well !!
The date of allotment letter would be considered as the date of acquisition.
In your case, it is beyond the time limit as specified u/s 54F.
You will not be able to get any exemption.
Hello,
The date of August 2016 would be taken to determine the eligibility for the exemption under the time-limit of 1 Year prior to the sale of the property. Since the date is beyond the time-limit, the exemption u/s. 54F won't be available.
I hope that this answer satisfies your requirements.
Regards,
CA Hunny Badlani
Did you make any agreement in 2016?
If yes then it can be controversial as majority payment was made in 2016 and hence it shall be considered as purchase date and then you won't qualify for 54F.
It's debatable so you may take your chance.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
In case of sale of plot the benefit can be claimed will be with respect to 54F
If the posession and agreement for the sale is done in last 12 months than benefit is avaiable
- Yes you can claim the exemption u/s 54F.
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