Section 54

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Querist : Anonymous

Querist : Anonymous (Querist)

30 September 2011 i have recently sold a residential flat at gurgaon entitled for LTCG benefit, having completed 3 years. I have another residential flat in the same complex which has completed only 2 years. Do i need to reinvest in another residential flat to get LTCG benefit. If yes, then what is the EXACT process - do I need to invest in another residential flat within 6 months or FY12 end, whichever is earlier?

Preety Parik

Preety Parik (Expert)

02 October 2011 To claim exemption of capital gain, u need to invest in another house within one year before or three years after, the date of sale of asset. (as per Sec 54(f).

Querist : Anonymous

Querist : Anonymous (Querist)

03 October 2011 Thanks but thats a very limited reply and possibly partly correct.. I am asking for a complete answer.
What I understand is this:
1. That I need to invest in another residential ready made property within 1 year before or 2 years after OR another under-construction property within 3 years after
2. If I have already invest 1 year earlier, then no issues. BUT if I have yet to invest in 2 years/3 years, then I need to do the following within 6 months:
A. Park the money into an SBI acct AND
B. Enter into agreement to buy

pls revert.

Preety Parik

Preety Parik (Expert)

03 October 2011

Read carefully Section 54F(4).
If the net consideration is not utilised for purchase/ construction before filing of return of income, then
1. Deposit has to be made in specified bank/ institution before the due date of filing of return. ( and not six months as spelt )
2. The deposit has to be appropriated towards purchase/ construction within 2years/ 3years of tranfer.
3. Once deposit is made before the due date of filing return, then the amount can be utilised for purchase/ construction within 2yrs/ 3yrs of transdfer

Querist : Anonymous

Querist : Anonymous (Querist)

05 October 2011 thanks for the info. Pls also clarify on this point:

If I already have a another house (which is tenented on the date of sale of the flat), then I am exempt from investing the LTCG in another residential property. Is this true?

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