Sec 54 Exemption CG

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CA. PABITRA MOHAN (Querist)

29 December 2008 i sold my RH for Rs. 50 Lacs and i purchased a land of 100 acres for Rs. 25lacs and constructs a RH in 1 acres area for Rs. 10 lacs. Can i get exemption Rs.35 lacs under 54

Taxguy

Taxguy (Expert)

29 December 2008 You are extending things too long. You can buy 1 acres and build in that, to claim 54

K V Subba Rao

K V Subba Rao (Expert)

29 December 2008 As I understand 100 acres is equal to 480,000 sft

For Rs 10 lacs, one may perhaps be able to build 1000 sft at average cost of Rs 1000 per sft

So you would be able to use only 0.2 percent of land for construction

Normally one can construct upto 66.67 % of land leaving 33.33 % for set-backs

So how do you think any one especially from Income Tax Department would believe genuineness of doings

I also suggest you concentrate on studies, complete CA and then earn enough to buy acres.

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