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Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2010 Dear Experts,

If a person had claimed LTCG exemption (return filed july 2009) for an under construction property purchased in may 2008 to be completed by 2011 and due to reason of a better area & location buys another under construction property in July 2010 and sells previous one bought in 2008 and pays STCG.

Can he still retain earlier claimed exemption benefit of LTCG under section 54. Is there any permitted method of retaining LTCG.

Thanks

Nischint Kumar Somani

Nischint Kumar Somani (Expert)
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07 September 2010 yes,

short term capital gain will be attracted on the under constructed property

and u can not claim exemption u/s 54, as the same is applicable only in the case, when any longterm capital assets is sold.

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