Regarding long term capital gain

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 August 2014 I sold a Residential Vacant Site for Rs. 48,00,000/- on 12/02/2014 which will be purchased on 28/09/2007 for Rs. 18,39,970/-

Now I had purchased a Residential Vacant Site for Rs. 2578900/- on 13/05/2014.

Is it I want to claim the Exemption u/s 54F?

Please reply me.

Thanks & Regards
Poornima

CA SUNIL K GARG

CA SUNIL K GARG (Expert)

06 August 2014 according to me , you have sold a residential plot for rs 48 lacs , which is long term capital asset and invested the rs 25.79 lacs in residential plot , before due date of filing return of income . u will get deduction u/s 54 F proportionality the investment in plot bears to NET consideration. but u have bear in mind certain provisions/condition of sec 54 F
1. u have to construct residential house with in three years of date of sale i.e 12/02/2017

2 u should not own more than one residential house on the date of transfer i.o on 12/02/2014
3 unlike sec 54 (1), the where capital gain is to be invested in new house, in sec54 F , net consideration has to be invested , in this case even u have invested more than capital gain, even then u will get proportionate deduction

4 u will not purchase any other residential house with in two year or will not construct any other new house within three other than mentioned above sec 54 F (2)

5 this new plot/ house , which has been purchased above will not be sold within three years of its construction sec 54 F (3)

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