Section 54E-Whether the investment of earnest money or advance received in specified assets before the date of transfer vitiates claim for exemption-Clarification regarding

Investment of earnest money in specified assets before transfer qualifies for capital gains exemption under Section 54E clarification.

The document clarifies that earnest money and advances are part of the sale consideration and that investments of such amounts in specified assets made before the date of transfer qualify as investments for exemption under Section 54E, ensuring they meet the statutory purpose of permitting application of consideration toward the required post-transfer investment.