Capital Gain deduction fy-23-24

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Quick Summary

If you've sold a house and invested the proceeds in an open plot, you may be eligible for capital gains tax deduction under Section 54 of the IT Act, 1961. However, this exemption is typically only available if you plan to construct a new house on the plot within three years of the original sale. The specifics of your investment, including joint ownership and loans, will need to be considered.

Keyur

Keyur (Querist)

13 May 2024 Sir/Madam

I have sale my house for Rs. 30 lacs and made following investment in May 24

> Invest in Open Plot in joint name of my son. total sales proceeds invested in this plot
> Balance amount of open plot -loan taken by my son from finance company.

Can i eligible deduction from capital gain arise from sale of my house rs.30 lacs

Please guide me.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

13 May 2024 Unless, you wish to construct house property over it, the exemption is not available over purchase of plot.

Keyur

Keyur (Querist)

13 May 2024 Within how many years construction will be completed?

Under which section deduction is available?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

13 May 2024 The house property should be constructed within 3 years from the sale of your earlier HP.
In this case sec. 54 IT act, 1961 will be applicable.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

07 September 2024 Good Luck.

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