Sec.54 amendment in 2014 affect on exemption on purchase of 2 house1 of which abroad

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  1. Anil Bhasin

    Anil Bhasin New Member

    I am staying in a house which was purchased by my late father at the time of purchase only ground floor existed first floor was constructed by self 1989-1990 FY and that is where I am staying. Property A

    I had invested in a house which was under construction possession given on 19th March 1990. This property sold on 29/5/2013. Property B
    Sale proceeds Rs.1.10 Crores and Rs.0.10 Lacs sale proceeds of fixtures and fittings total Rs.1.20 Crores received.
    Had invested in a residential house on 22nd June 2012 agreement date token money paid on 23rd/26thMay 2012.Property C
    This house is still under construction likely completion June 2015. Is this qualified for before one year from date of sale for the purpose of claiming exemption from capital gains. Property C approx. value Rs.67Lacs.
    I had also invested in a house in USA Rs.41Lacs.on 11th Oct.2013 Property D.
    Before filling the return for the year ending 31/3/2014 that is on 26/7/2014 I had deposited Rs.1.00 Crore (stating that Rs.40Lacs already invested) in Capital gains Account with Maturity date of 30/4/2015.Can the maturity date be extended.
    Can I invest further sums in property C & D to close the capital gain account.
    Will 1. the service tax paid on under construction property C be allowed as amount spent for the purposes of claiming capital gains exemption U/s54. 2.Similarly interest on Bank Loan will it be allowed as amount spent for the purpose of claiming exemption U/s 54 . Property C
    In the alternative should I spend the capital Gains amount lying in the Capital gains account with the bank to buy /purchase a new house such that the amount of capital gain is fully invested. Property E.
    Many of these issues have cropped up because of change in sec 54 during the last budget where the concept of a single residential house in India was introduced.
    harish gulati likes this.
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