section 54F-investment in under construction flat.

[alam singh]

if net proceeds are invested in under construction flat within one year of sale-(structure complete and finishing has commenced,) but possession is not delivered within 3 years,then will the benifit under section 54F be withdrawn?

[CAGOPALJI AGRAWAL]

The construction should be completed within three years from the date of transfer of original asset. Possession or legal deed may pass on after 3 years.

AI Summary

Section 54F construction requirement: completion within prescribed period preserves capital gains exemption despite delayed possession. Under Section 54F the operative compliance condition is that the new residential construction must be completed within the prescribed completion period measured from the date of transfer; possession or legal deed may be delivered after that period provided construction was finished within the prescribed time.