|QUERY:||‘P’ had to sold her property in order to finance her daughter’s medical expenses.
The agreement for sale was entered for Rs. 50/- lakh. She received only Rs. 35/- lakh due to dispute with the buyer. No possession of the property was given. She does not have money to invest in order to claim exemption u/s. 54. The AO passed the order levying tax on Rs. 50/- lakh. Whether AO is right?
|ANSWER:||Click here to read the full answer of the expert|
|EXPERT:||CA. H. N. Motiwalla|
|CATCH WORDS:||capital gains, exemption, profit on sale of propety, Transfer of Property Act|
In this case transfer is not complete, because of property has not been given and therefore there is no question of investing in another house to claim exemption under section 54.