54f exemption claim

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A married couple sold two separate vacant lands and purchased a new site jointly, intending to build a home within three years. They already own a residential property. While Section 54F exemption is generally available for reinvesting capital gains into a new residential property, it is not permitted if the assessee already owns more than one residential house at the time of selling the original asset.

swetha

swetha (Querist)

03 June 2021 A and B husband and wife had 2 seperate vacant lands in their individual names. They sold both the lands and bought new vacan site jointly on wch they want to construct home within 3 years. They already own one residential property. Can they claim 54 f exemption for this new property

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

03 June 2021 Yes, they can claim 54f exemption

CA Rajat Pathak

CA Rajat Pathak (Expert)

03 June 2021 exemption under section 54F is not available if
assessee already owns more than one residential house on the date of transfer of the long term capital assets

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