06 May 2017
scenario:
I incurred LTCG in fy14-15 and took exemption by purchasing a flat on 25.3.15. This is my first house.
I incurred again LTCG after selling a plot in fy16-17.
Can I claim 54f again by purchasing another plot with full consideration and build a house after 2 years
06 May 2017
section 54F Provided that nothing contained in this sub-section shall apply where— (a) the assessee,— (i) owns more than one residential house, other than the new asset, on the date of transfer of the original asset; or (ii) purchases any residential house, other than the new asset, within a period of one year after the date of transfer of the original asset; or (iii) constructs any residential house, other than the new asset, within a period of three years after the date of transfer of the original asset
07 May 2017
just want to make sure I am not violating clause iii by investing entire sales amount on a plot, claim 54f again within 3 years, but time the construction later so that it's after 3 yrs from first 54f and within 3 years of 2nd 54f
07 May 2017
if you invest entire sale proceeds in a plot, that is quite tenable at law because there is no any exemption u/s 54F for plot as new asset. You will be entitled to exemption only when you construct the residential house within a period of 3 years. (In your case since you bought a house on 25/03/2015.......you have to construct after 25/03/2018 but before 3 years from the date of transfer of the asset (i.e. the one sold in FY 2016-17)
CAclubindia
