Section 54

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siddharth bodas (Querist)
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19 September 2013 Hi, I recently sold my residential flat for 78 Lacs (which is higher than stamp duty value, therefore sec. 50C not applicable) , which I purchased 3.5 years ago for40 lacs. The Indexed cost of acquisition comes to58 Lacs, which arises a long term capital gain of 20 lacs (78-58).... However, 2 months ago(from the date of selling above flat), I had booked an under construction residential flat from a reputed builder for 70 lacs, the possession of which is after 3.5 years. I already paid 25 lacs as down payment, The rest of amount will be paid in installments(which fall after this prev. year) as and when the due dates come up, I have availed credit facilities for the payment of above installments. Am I eligible for exemption u/s 54 of the Income Tax Act? If yes, Any comments/suggestions would be highly appriciated..

Nikhil Kaushik

Nikhil Kaushik (Expert)
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21 September 2013 You shall be eligible for claiming benefit under54. However, if you are eligible only under 54F instead of 54, it is advisable to deposit the remaining funds in capital gains accounts scheme.