Long term capital gain taxability or not

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CA Sanjay Baheti (Querist)
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14 February 2012 One of my client being an Individual has received a Commercial Shop by way of Gift from his elder Brother in Financial Year 2005-06. This Gifted Commercial Shop was sold in Financial Year 2010-11 for a Sale Consideration of Rs.15,00,000- Now this entire Sale consideration is invested in another Commercial Shop in Financial Year 2012-13.Now Query is what the Tax treatment in Financial Year 2005-06,2010-11 respectively after keeping in mind Capital gains Provisions as per I.T. Act whether the said Long term Capital gain is exempted us 54F of I.T.Act or not.

Please reply soon as I have to file I.T. return For Asstt.Year 2011-12 is to be filed prior to 29/02/2012.

CA. Hari Kishan

CA. Hari Kishan (Expert)
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14 February 2012 The Capital gain is without doubt a Long term capital gain.. but since the gain amount is invested in Commercial shop again.. you are not eligible to claim exemption under section 54F.. the exemption is available only if the reinvestment is made in a residential house..

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