I have sold my residential house and invested the entire proceeds in purchase of a new house from a builder for which an agreement to sale is registered. However, the builder has not given possession of the flat. Am I eligible for benefits?

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• I have purchased a flat from the builder through an agreement to purchase. The payments are made as per the stage of construction. I haven't received possession of the flat within two years and I haven't registered a sale deed for purchase of new flat/house from builder. Am I eligible for exemption?

  Yes. Agreement to purchase coupled with substantial payments is enough for claim of exemption. The date of possession is more important than the date of sale deed or purchase deed. However, if possession is beyond your control, you can claim so ...

• I have invested the sale proceeds of a residential house in purchase of a house in the name of me and my wife. Am I eligible for the benefits?

  Section 54 does not explicitly state that the purchase to be made or the construction to be put up by the taxpayer should be in the name of the taxpayer. What is material is the investment of the sale consideration in acquiring the residential ...

• What is the time limit for purchase of a new residential house from the time of sale of original house?

  In order to be eligible for the benefit under this section the NEW house must be purchased within a period of ONE year BEFORE or TWO years AFTER the sale of original asset.

• What is the time limit for investing the capital gains on sold residential property in a new property?

  For claiming exemption u/s54, the capital gains arising from sale of old property must be invested in: Purchase of another residential property within one year before or two years after the transfer of the old property. Construction on a residential ...

• What is the time limit for construction of a new residential house from the time of sale of original house?

  In order to be eligible for the benefit under this section the NEW house must be constructed within a period of THREE years AFTER the sale of original asset.