Section 54

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chandrasekhara swamy (Querist)
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24 March 2012 i have purchased a plot (land) for 10 lacks in feb'2012 and i sold some land (10 years old) in march'12 for 20 lakhs , for capital gains exempt from tax i need to invest in res house one year before or buy a house within 2 years and construct a house within 3 years .

as per the above case i will construct a house on the plot purchased on feb'12
shall i get exemption under capital gains for 10 lakhs or not ?????

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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24 March 2012 Yes you will get the exemption (but under Section 54F and not under Section 54) provided you invest the whole amount before the due date of filing return.

Further exemption is available as the construction will be completed only AFTER the sale.

However, if you are not able to invest the whole amount by the due date, then you will have to deposit the same in a Capital Gain Account with a nationalised bank BEFORE the due date.

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