long term capital gain on sale of LAND

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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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