I have entered into a agreement with the developer to buy a flat and made payments on the basis of percentage completion. It’s been 2 years now, but I haven’t received the possession or entered into a sale deed. Can I qualify for exemption u/s. 54 / 54F?

February 20, 2024 13:33

Yes, Qualification for Exemption under section 54 / 54F is possible with the following key factors validating the claim of purchase, especially in the absence of final sales deed registration:

Purchase Agreement: A purchase agreement or another legal document serving as evidence of ownership title to the newly purchased house property.
Payments: Substantial down payments made towards the property.
Possession and Sale Deed: While possession of the house property is crucial to validate the purchase, especially in the absence of final sales deed registration, it's acknowledged that possession may be outside of your control.

In such cases, you can assert this circumstance before the Assessing Officer (AO) to support your claim for exemption under section 54.

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