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Capital gain on sale of flat and plot

20 June 2015

Hello, I want to know that Capital Gain Arrises on Sale of Flat Rs. 7 lakhs and On Sale of Plot Rs. 15 lakhs Can Invest Total Rs. 22 Lakhs from Capital Gain in One Flat or Not.

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4 Replies

Rashi Bajaj (CA) (752 Points)
Replied 20 June 2015

Are both gains Long Term?

Rajesh ranka (CA) (80 Points)
Replied 20 June 2015

yes both are Long term Gains

Rashi Bajaj (CA) (752 Points)
Replied 20 June 2015

Dear sir,

Inrespect of capital gains from sale of flat, you have an option invest u/s 54 or u/s54F, Sec 54 being the obvious better choice. However, in respect LTCG on of sale of plot, your option for investing in residential property is restricted to Sec. 54F.

Please not the difference between the two nature of investments:

Comparison between Sec. 54 and 54F
	Sec 54	Sec 54F
Old Asset	Residential House	Any long term capital asset
New Asset	Residential House	Residential House
Amount of Investment	Capital gains	NET SALE CONSIDERATION
Amount of exemption	CG invested	Proportionate CG(w.r.t. Sale consideration)

You must already know about the limitations of period, so I am not elaborating on that.

As regards your query, Rs. 7 Lacs + amount of Sale Consideration of PLOT need to be invested in the new residential house to claim exemption under both sections.

Hope this helps.