You can claim exemption on cost of making new house habitable: Experts

Only substantial structural changes eligible under Sec 54 of I-T Act

In a recent ruling, the Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench, held that capital gain exemption under section 54 of the Income Tax (I-T) Act, 1961, can be allowed on bona fide expenses incurred for making the new house habitable before possession. Most people who have bought or sold a residential property, or plan to, may not be aware of this exemption.
 
Benefit for individuals and HUFs only
Under Section 54, a seller can av­ail of tax exemption on the capital gain arising from the transfer of a residential house property. This benefit is available only to individuals