54F

I have sold land on which capital gains arises

(A) I have purchased another housing plot (vacant) for CG purposes

(B) I also own another housing plot previously purchased. Can I construct on this housing plot and claim exemption for the value of (A) plot and (B) construction?

Replies (4)

CBDT circ no 667 dt 18/10/93 states that cost of plot acquired by the assessee will also be eligible for exemption along with cost of construction or acquisition for sec 54 and 54F...

So sir i guess u ll get the exemption for the plot if it is purchased within the time period allowed as per the sec..in case of previously purchased plot if its 1 yr before from the transfer of the land..tats it from my part...wait for expert answers for more info

 since you do not own any house within 1 year of sale of original asset u/s 54F, it is "not new asset". then you need to construct house on land you purchased recently, to be eligible for land and building or building on old land for exemption on building only.

Dear Suresh BOTH PLOT & BUILDING CONSTITUES HOUSE..

U CANNOT SAY THAT U HAVE PURCHASE PLOT "A" AND CONSTRUCTED BUILDING ON PLOT "B"..

FOR CLAIMING BENEFIT OF EXEMPTION HOUSE SHOULD BE CONSTRUCTED ON PLOT "A" ONLY..

For claiming Exemption under section 54F u have to either Construct OR  Purchase , both activities cannot be taken up simultaneously unlike section 54  where both can be done as per various judgements of Courts.

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