Get capital gains benefit in case of project delay

Only the amount invested during the stipulated time mentioned in the law will be eligible

Recently, the Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) ruled if a taxpayer invests capital gains of one house property into an under-construction flat, it should be considered at par with him constructing his own house, rather than a purchase.

The ruling brings relief to taxpayers facing project delays, by giving them an additional year. Section 54 of the I-T Act deals with capital gains from a house property. It says taxpayers can get the capital gains tax benefit only if they invest in a new property one year before the sale of an old one or two years