Section 54/54F

[Ethirajan Parthasarathy]

To claim relief under section 54/54F, one has to construct a residential house within 3 years from date of sale of original asset. If it is purchase of house, the time limit is 2 years.

My question is whether 2 years or 3 years time is applicable for investment in a apartment being developed by a builder.

[Padmanathan KV]

Apartment being developed by builder tantamounts to "construction" and 3 years will apply. If he is investing in already constructed apartment, 2 years will apply.

AI Summary

Capital gains reinvestment time limit for residential property: builder-developed apartment treated as construction, longer period applies. The reinvestment time-limit depends on whether the apartment is under construction or already completed: investment in a builder-developed apartment under construction is treated as construction and the longer construction-period applies, whereas purchasing an already constructed apartment is treated as a purchase and the shorter purchase-period applies.