date of acquistion of under contruction property

[jatin Gandhi]

One of my relatives has sold a land and is planning to purchase a under construction house to claim deduction u/s 54F. The agreement for the new house would be executed immediately and 100 percent payment would be done upfront. I have following queries related to the same:

1) In case if the person is already holding 2 properties, then is it feasible to sell one of the house and claim deduction under section 54 and 54 F simultaneously.(This is to be done as there is condition to claim deduction u/s 54F that the person should hold not more than one property on the date of claiming deduction u/s 54F)

2) If the person decides to sell the new house after 3 years, then would the date of acquisition be date of agreement of new house or date of possession.

3) in case if the builder fails to give possession within 3 years from the date of original transfer of plot, then would the capital gain deduction claimed under section 54 F be added back

AI Summary

Seeking Tax Advice on Deductions for Under-Construction Property Purchase Under Section 54F and Related Queries An individual is seeking advice on tax implications related to the purchase of an under-construction property to claim deductions under section 54F of the Income Tax Act. The queries include whether selling one of two existing properties allows for simultaneous deductions under sections 54 and 54F, the determination of the acquisition date for tax purposes if the new property is sold after three years, and the impact on capital gain deductions if the builder fails to deliver possession within three years. The response asks if the individual received clarification on these issues.