Capital gain exemption under sec 54 f

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Shashwat Agarwal (Querist)
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24 November 2014 Dear Experts,
I have a land who's market value is 60,00,000/- (max) but the current circle rate is around 1,68,00,000/- i want to sell the land and want to purchase 1 residential unit.
so the capital gain will be calculated on 1,68,00,000/- (i.e approx 31,60,000).
As per section 54F i have to invest the net sale consideration in the purchase.
due to unavailability of such huge amount of funds i will be able to invest only the amount 60,00,000 minus capital gain so chargeable.
please let me know how can i save the maximum amount of capital gain or is there any process so that the circle rates can be revised.

CA SUNIL K GARG

CA SUNIL K GARG (Expert)
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24 November 2014 dear sir,
if the fair market value of the property is less than circle rate, sec 50 C 2, itself gave the remidy. u can approach the A.O to appoint valuation officer. if the valuation officer confirms the FMV AT rs 68 lacs . than the consideration u/s 50 C will be 68 lacs and not 160 lacs.

Shashwat Agarwal

Shashwat Agarwal (Querist)
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25 November 2014 Thanks for the reply
sir i also want to know what is the practical procedure for the same.
And how to convince them to downgrade the value.

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