Investment of capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 May 2014 I have generated a capital gain of Rs 47lac by sale of a NA land. Can I claim exemption u/s 54F by purchasing 2 flats (27lac + 20lac)

Presently I don't have any residential property on my name.

Plz guide

Nikhil Kaushik

Nikhil Kaushik (Expert)
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19 May 2014 depends on the facts of the case...if these two houses are in the same building, housing complex, normally deduction is allowed...in some cases deduction has been allowed even where both the houses were in same locality...

however, if you decide to buy in totally different places, at best you will be able to claim exemption only against one house..

Querist : Anonymous

Querist : Anonymous (Querist)

20 May 2014 The flats are not in same complex but in same city.

Then what is your final verdict i should go for it or not?

In case no , then what is other option to save tax on remaining gain , say if i buy 1 flat for Rs 27 lac.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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20 May 2014 depends on case to case...more the distance, difficult it becomes to get the exemption...you can invest under 54EC to claim exemption.

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