54F

585 views 4 replies

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.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 30 June 2026
2 posts Article assistant and Articleship completed students

Chirag N Shah & Associates

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 27 June 2026
Article

SNCO

Mumbai

CA Inter

View Details
Company
25 June 2026
Accounts & Taxation Executive

Dindukurthy & Associates

Hyderabad

MBA

View Details
Company
ARTICLESHIP 24 June 2026
CA Article Trainee

Rahul Dang & Associates

Pune

CA Inter

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details
Company
22 June 2026
Finance Manager- Chartered Accountant

Triveni Turbine Limited

Bengaluru

CA

View Details
Company
20 June 2026
Chartered Accountant

ANV & Company

New Delhi

CA

View Details
Company
12 June 2026
Accounts & Taxation Executive

Winshine Financial Services

Mumbai

CA Inter

View Details