LTCG - Disallowance u/s 54 - construction of new house begun ...

Tax Tribunal: Exemption u/s 54F Valid with Borrowed Funds, Timeline Compliance Key at Possession Stage.

March 26, 2024

Case Laws Income Tax AT

LTCG - Disallowance u/s 54 - construction of new house begun before the sale of the old house - The Tribunal emphasized that section 54 does not mandate the utilization of sale proceeds from the original asset for the purchase or construction of the new asset. - Referring to decisions from various High Courts, the Tribunal held that exemption under section 54F is applicable even if the investment is made from borrowed funds, as long as it meets the stipulated timeline. - Regarding the timeline for construction and possession, the Tribunal reiterated that the relevant date should be determined based on when the builder offered possession or cleared the balance dues, rather than earlier stages of construction.

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LTCG - Disallowance u/s 54 - construction of new house begun ...

Tax Tribunal: Exemption u/s 54F Valid with Borrowed Funds, Timeline Compliance Key at Possession Stage.

March 26, 2024

Case Laws Income Tax AT

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