Short term capital gain
This query is : Open
Ramesh kumar
(Querist)
04 March 2012
A man was purchased a land in 2008. he sold this land in 2011 before complete 3 years. It means Short Term Capital Gain. he invested sale amount in construction of house and construction in process. So I want to know that in which section the amount of construction will be exempted..?
CA PARAS BAFNA
(Expert)
04 March 2012
The applicable Section is 54F in such type of cases.
Further the amount utilised in construction till the due date of Return Filing of the relevant Assessment Year must be equal to or more than the sales consideration for getting full capital gains exemption.
Further the amount utilised in construction till the due date of Return Filing of the relevant Assessment Year must be equal to or more than the sales consideration for getting full capital gains exemption.
04 March 2012
Dear Paras sir, Section 54F is applicable only when a LONG TERM CAPITAL ASSET IS SOLD.
Since in the given case, the asset sold is a SHORT TERM CAPITAL ASSET, exemption u/s 54F is not available.
Since in the given case, the asset sold is a SHORT TERM CAPITAL ASSET, exemption u/s 54F is not available.
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CA PARAS BAFNA
(Expert)
05 March 2012
Thanks Siddharth, for rectifying me.
.
In case of STCG on land, you can not get exemption under any of the sections.
.
In case of STCG on land, you can not get exemption under any of the sections.
Ramesh kumar
(Querist)
05 March 2012
Thank you very Much Paras Sir and Siddhartha Sir...........for your reply...........
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