Capital gain exemption u/s54

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2011 Respectede sir
can you tell me about exemption taken under section 54f on purchases of the land on which house is constructed in future. say shop sold by rs. 20 lacs and land purchse by rs. 18 lacs but balance amount not deposited in to capital gain account before filing the return and therafter actually house is constructed on that land. how i will proove and get the benefit of exemption in capital gain tax. as that year case in scrutiny, please guide me, thanx in advance

U S Sharma

U S Sharma (Expert)
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12 August 2011 shop sold for 20 lacs and land taken for 18 lacs, here the whole 20 lacs is not capital gain but from it you have to deduct the indexed cost of acquisition.

when the house is "started to construct" you have obtained the permission of local municipal authority, and there is specifically mentioned "to be completed within............" this is a valid document of construction subject to physical verification of property.

CA Hardik Bunha

CA Hardik Bunha (Expert)
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13 August 2011 hi, you are not eligible to claim exemption u/s 54f because this section clearly indicates that before filling of return you have to invest gain amount in capital gain scheme, here you are failed to put in the scheme.so whole capital gain will be chargeable to tax. here you cant prove it.