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  1. Umapada Mukherjee

    Umapada Mukherjee New Member

    A purchase an old residential house property within 2 years of sale of property u/s 54F but it requires a further 1 year time to bring the old house a habitable condition. Whether the assessee will get 3 years time instead of 2 years time allowed for claiming exemption under Capital gain in case of purchase??
    Last edited: Jul 19, 2016
  2. ZED

    ZED Well-Known Member

    Whether the house property was purchased or constructed?
    If property is not habitable then it can not be said to as a residential house property. [Ashok Syal V. CIT Jalandhar (2012) 209 Taxman 376 P&H ]

    However, it can be claimed that this is a case of construction and hence extended period of 3 years can be applicable.
    [CIT V Mathavan Pillai (A.R.)(1996) 219 ITR 696 (Ker)]
    As per the above judgement, construction does not mean new construction alone, but can include construction which include cost of remodelling ( read as to make the property habitable)
    Umapada Mukherjee likes this.
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