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54 F of the income Tax Act1961

abhay garg (Senior auditor) (110 Points)

07 October 2020

I have sold two plots in December 2019 and I have invested in the construction of a new house. The land was already purchased in April 2018. Whether or not I can avail benefits under Section 54F of Income Tax Act for both plots

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Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 07 October 2020

Yes, you can avail benifit of Section 54F of Income tax Act, 1961

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Amit Khare (204 Points)
Replied 09 October 2020

Yes you can avail benefits of 54 F.

Pallavi P (Job) (151 Points)
Replied 09 October 2020

Taxpayer selling multiple properties( 2 plots in your case) & invests in one residential house is eligible to claim deduction u/s 54F. House should be constructed within 3 years from the date of transfer.

However , there are many case laws where deduction is not denied even though construction not completed within 3 years .

If you have not started construction within due date of return filling, you will get deduction u/s 54F, if you deposit Net sale consideration in Capital Gain Account Scheme.(CGAS)

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