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Capital gain

suresh (article) (146 Points)

17 October 2016

please experts advice me in regarding following doubt. if mr. x sold one plot at rs. 300000 and that was purchased at rs. 100000 and sold another plot of rs. 3500000 and that was purchased at rs. 1600000 and wants to buy another flat of rs. 5000000, so my question if whether he can get benefit of deduction against both sold plot or benefit can be avail to only single plot sold. plz experts advice me regarding this.

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6 Replies

Mahendra (Chartered Accountant) (154 Points)
Replied 17 October 2016

Assessee can claim benefit of exemption from Long Term Capital Gain U/s 54F on both the plots. There is no restriction that assessee can claim benefits of exemption only against one LTCA.

2 Like

CA Saba Naaz (Chartered Accountant) (8487 Points)
Replied 17 October 2016

The assessee can claim exemption for both, provided the amount is properly invested further.

1 Like

Karan Chandna (Self Employed) (81 Points)
Replied 17 October 2016

It depends whether assesse already hold any other property or not.. Section 54 f provide exemption for 2 nd property only....

suresh (article) (146 Points)
Replied 18 October 2016

Thank you to all.

But still confusion on answer of karan sir, can u plz explain me that point "second property" means.

And is there any requirement that it should be a long term capital assets.

Plz experts...

saurabh kumar (Tax Consultant) (348 Points)
Replied 18 October 2016

The assets being transferred should be long term capital asset to claim the exemption.The second residential house means, at the date of transfer the assessee should not hold more than one residential house exclusive of the new one which is being purchased(u/s 54F).