Capital gain

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sreejith nair (Querist)
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24 December 2013 sec 54 mentions that any LTCG arising due to transfer of Long Term Capital Asset, being a building or land appurtenant thereto and being a residential house(the income of which is chargeable U/H "H.P" & the assessee has purchased or constructed a residential house using Capital Gains arising out of above sales.

My question is whether a plot(with no building) allotted by HUDA can be treated as residential house & therefore exemption u/s 54 can be claimed on sale of such plot ?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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24 December 2013 u/s 54F allowed, as it uses the word building or land.

sreejith nair

sreejith nair (Querist)
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24 December 2013 but it uses the word land appurtenant thereto

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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24 December 2013 so in case suppose a building was there and it was demolished then in that case wouldnt it b applicable?

sreejith nair

sreejith nair (Querist)
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25 December 2013 but in that case there was a building there earlier, but in case of vacant plot there wasnt any building on it, so it is not land appurtenant to any building.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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25 December 2013 Plot is neither a residential house nor it is land appurtenant to the residential house.

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For exemption of capital gains - Section 54F will be applicable where the assessee can obtain full exemption if he invests entire sales consideration into a residential house within the stipulated time.
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CA Pallav Singhania

CA Pallav Singhania (Expert)
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25 December 2013 Agree with Experts,
It will be treated as Capital asset..
However Exemption in Case of 54 will not be allowed..
However, 54F will be allowed...

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CA VISHNU GAVKARE

CA VISHNU GAVKARE (Expert)
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28 December 2013 Open land does not form part of House Property. Exemption under 54F can be availed.

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