long term capital gain on sale of LAND

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If you've sold land and made a long-term capital gain, you might be able to claim tax exemption by investing in a new residential property. Under Section 54, you can purchase a new home within two years of the sale or construct one within three years. If the land sold wasn't residential, Section 54F offers similar exemption options with comparable timelines. It's crucial to adhere to these specific investment periods to successfully claim your tax relief.

a k gupta

a k gupta (Querist)
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26 January 2021 I HAVE SOLD A PLOT IN JUNE 2017 HAVE CAPITAL GAIN THAT DEPOSITED WITH BANK OF INDIA IN CAPITAL DEPOSIT ACCOUNT. CAN I PURCHASEN IN JANUARY A FLOOR IN NEW BUILDING AND GET TAX EXEMPTION IN MY ITR 21-22. IS THERE ANY OPTION OTHERWISE TO EXEMPTION CAN U SUGGEST ANY EXPERT IN THIS FIELD IN DELHI HOPE EARLY REPLY

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CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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26 January 2021 No you can't do so. As per Sec 54F you have to purchase the new property within 2 years from date of sale.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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06 July 2024 Capital Gains Exemption Options:

1. Section 54 of Income Tax Act:
• Under Section 54, you can claim exemption from capital gains tax if you purchase a new residential property within certain timelines:
• Purchase: You can purchase a new residential property either 1 year before the sale or 2 years after the sale of the plot.
• Construction: Alternatively, you can construct a new residential property within 3 years from the date of sale.
• The exemption is available if the entire amount of capital gains is invested in the new property or used for construction.
2. Section 54F of Income Tax Act:
• Under Section 54F, if the plot sold was not a residential property, you can claim exemption by investing the capital gains in a new residential property. The timelines and conditions for exemption are similar to Section 54.

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