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Querist : Anonymous

Querist : Anonymous (Querist)

20 August 2015 Hi Expert,
A shop, owned for 16 years, has been sold by the owner. No doubt capital gain tax is applicable.
Is there any provision in Income Tax Act which says if the amount received from sale of shop, if invested, in a flat in residential building within a year or two from the date of sale then the amount so invested is exempt from CG?
If any such option is available could the same be mentioned by the expert?

thanks

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)

21 August 2015 Yes section 54F provides that capital gain accruing from sale of any asset other than residential house property may be invested in a residential house property within two years from the date of sale in case of purchase and within three years in case of construction. However for section 54F exemption sale proceeds are required to be invested rather than the capital gain. Also the assessee must not already have a house property in his name other than the new one used for exemption.

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