Short term capital gain

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Ramesh kumar (Querist)
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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

CA PARAS BAFNA (Expert)
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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.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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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.

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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05 March 2012 Thanks Siddharth, for rectifying me.
.
In case of STCG on land, you can not get exemption under any of the sections.

Ramesh kumar

Ramesh kumar (Querist)
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05 March 2012 Thank you very Much Paras Sir and Siddhartha Sir...........for your reply...........

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