My Client Has Sale one Plot Of Land on
01/11/2017 And He Has A Long Term Capital Gain of 6,21,607/- And He Had
Purchased One Residential House On 22/09/2016 For Rs 10.50.000/- As Per 7/12 It
Is Registered on 04/11/2016.
As Per 54f One Year Before From The
Date Of Transfer Is Eligible For Exemption. Here As Per Registration Date It Is
Shorter For That 1 Year Period ( Date Of Sale 01/11/2017 And New Purchase Date
22/09/2016) Kindly Guide For The Same Whether It Is Eligible For Such
Exemption And Give Reference For Case Law If Any
If an assessee wants to claim the
exemption of long term capital gain, the time limit given for the period of
Purchase of Residential house property under section 54F of the Income tax act,
1961 is within one year before the transfer of capital asset took
place. Date of Registration of property would be immaterial for
determining the date of purchase.
As in your client’s case the
property which was acquired has not been purchased within the prescribed time
limit. Although the registration date (04.11.2016) of purchased house property
is within the time limit of one year as stated above, but it cannot be
considered as date of purchase. Therefore 22.09.2016 will be considered as the
date of purchase instead of 04.11.2016 (dates of registration).
Hence, your client can not avail the
benefit of exemption under section 54F of Income Tax Act.