Advance for property – Is the perplexity over??. Provisions of section 54 of the Income tax Act, 1961, which provide an exemption from capital gains tax, requires fulfillment of certain conditions for availment of exemption. The conditionalities, in brief, are either to purchase a house property 1 year before the date of transfer or within 2 years from the date of transfer or construction within 3 years from the date of transfer.A controversy which has been luring around this provision is that whether the exemption benefit is available where the transaction of purchase/ construction, inspite of making payment, is not completed within the given time frame. To put it differently, the issue is ‘Whether exemption benefit would be available in cases where advance payments are made?’ This issue has been covered in many judicial precedents and has mostly resulted in favor of assessee. An attempt is being made to cover the issue with help of some recent judicial pronouncements.