SECTION 54-F (*)

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This discussion clarifies the applicability of Section 54F for capital gains tax. It addresses a specific scenario where a client sold a shop and used the proceeds to purchase an additional residential property, resulting in ownership of two homes. The query seeks to determine if this transaction attracts capital gains tax and if the Section 54F exemption can be claimed, requiring the full net consideration to be invested in the new house.

TARIQUE RIZVI

TARIQUE RIZVI (Querist)
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08 November 2021 Respected Sir,
How the section 54-F is applicable & as in which case. One of my client is holding already a residential premises and a shop in his name. He has sold the shop and by the earning of sale of shop he has purchased an additional residential premises. Finally he is now holding two residential premises at a time. I would like to know whether sale of shop will attract capital gain tax @ 20% + 4% Cess. Please guide me and oblige.