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)
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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)
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03 June 2021 Yes, they can claim 54f exemption

CA Rajat Pathak

CA Rajat Pathak (Expert)
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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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