To benefit a large number of individuals who sell their assets spanning different years for buying a dream house, the Income Tax Appellate Tribunal had gone ahead and provided relief as capital gain exemption for all of the property sale spanning multiple years u/s 54F for an under construction house.
So, for sale of any asset other than residential property, you are now allowed tax exemption provided certain specified conditions are met.
1. The income tax assessee should be investing the net proceeds arising from sale of the asset in purchasing the new house.
2. The assesssee should not be owning more than one house as on the date of transfer in addition to the one that is bought for claiming capital gains tax exemption.
3. The sale of asset should be followed by new property purchase in 2 years time and construction in three years time and construction of the house should be completed in three years time.
4. Also, other than the property purchased for claiming tax exemption u/s 54F, the taxpayer should not be purchasing any other property in one year time or construct a new residential house in three years time.