LTCG Exemption

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 March 2011 I had sold a residential land last year for 25 lac on which LTCG is 20 lac

I want to know that if i go for Constructing a residential house in order to claim exemption u/s 54, can i include the purchase and improvement cost of the new residential plot i m going to use for the aforesaid construction for calculating the total cost of construction?

CA Dhiraj Ramchandani

CA Dhiraj Ramchandani (Expert)
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05 March 2011 I think for claiming exmptn u/s 54.., construction can b claimed.., bt nt the cost of improvement, unless its a MAJOR improvement... Nywz, lets welcome real experts and get their opinion as well...

Querist : Anonymous

Querist : Anonymous (Querist)

06 March 2011 I mean the cost of the land on which the house will be constructed

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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06 March 2011 The cost of land can be included for the purpose of ascertaining the amount of construction cost incurred for new house U/Section 54 & 54F.

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