Long term capital gain

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godachappa.i angadi (Querist)
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15 December 2011 we sold the open plot on 15-10-2010 to the Airport Authority(acquired compulsorily) by payment of Rs15,96,824.The payment is received on 25-10-2010, but not deposited in Capital Gain Account Either in A or in B Account as per the I.T Act.But deposited 12,00,000/(Twelve Lakhs) in simple Term Deposit.The Plot was purchased on 18-06-1988 by payment of 33600/-
Now amI directly invest in Purchase of House with in 2Years of such sale or Construct the House with in 3Years to get exemption u/s 54F of I T Act.Still I have not filed my return of income for the Asstt.year 2011-12 because I donot have any other income, but owned only one Residential house to live.Kindly elaborate the exemptions under sect.54F

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Guest (Expert)

16 December 2011 16th December, 2011

The exemptions under Section 54 have been explained by Adv. Amit Bajaj in the following link :

https://blog.amitbajajadvocate.com/2011/05/exemption-from-long-term-capital-gain.html

In the December Journal of the ICAI, there is a case law CIT V/s Kinetic Capital Finance Ltd. (Sep. 2, 2011 - Delhi) which clearly speaks of exemption for investment of the proceeds in either National Housing Bonds or in Rural Electrification Corporation Limited till the house is purchased or constructed within 3 years.

FCA Prashant Chavan

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