54F Plot query

If Mr. x has Ltcg of 7lakh and sale proceeds of 15lakh,

He invests all the sale proceeds in a residential PLOT

1) Is he eligible for 54F?
2) If he is unable to construct a house due to lack of funds, then what are the consequences?


Thankyou
Replies (2)
Quick Summary
This discussion clarifies Section 54F of the Income Tax Act regarding capital gains from selling assets and investing in a plot. It addresses whether investing sale proceeds from an asset into a plot qualifies for exemption, especially when the plot is not yet constructed into a house. The consequences of not completing construction due to insufficient funds are also explored, highlighting potential tax liabilities on long-term capital gains.

1. No, unless HP constructed.

2. Tax liability over LTCG.

Exemption available.

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