ITAT Allows Deduction under Section 54F of Income Tax Act for Construction of New Residential Unit

The Chennai Bench of Income Tax Appellate Tribunal (ITAT) has ruled that deduction under section 54F of Income Tax Act, 1961 is permissible for the construction of a new dwelling or residential unit. The appellant, Shri Chandra Bhavani Sankar, filed a return of income which included salary, income from other sources, and long-term capital gains.

ITAT Clarifies Section 54 Requirements

The Tribunal emphasized that Section 54 does not mandate that construction cannot begin before the date of asset transfer causing capital gain. This decision provides clarity for taxpayers seeking deductions under this section.

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