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An urgent query u/s 54f

kesha (...) (218 Points)

08 February 2013

i had a query that if a person Avails Exemption u/s 54F for LTCG in a particular year then can he avail Exemption u/s 54 with in 2 years ..

is it possilbe ??

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7 Replies

IMAM (ARTICLE ASST.) (371 Points)
Replied 08 February 2013

no you can not avail exemption within two years

Saurabh Maheshwari (B.com,ACA) (5923 Points)
Replied 08 February 2013

My cross question is how you can claim exemption u/s 54 and u/s 54 F against sale of same capital asset. .

Because exemp u/s 54- Long Term Capital Gain arising on sale of RHP,......but sec 54F specifically says that gain arsing on sale of long term asset but such long term asset should not be a Residential House.

So pls explain your case in detail .

kesha (...) (218 Points)
Replied 08 February 2013

Thanks for the repl. here is the Detailed Explanation of my Query

For example I Sell Jewelry Worth of Rs. 10 Crs and Invest the net Consideration in Residential House Property (New Property)

Again within 2yrs I sold my existing (old one) Residential Property (Not which I Purchased Above u/d 54 F) and invested in another Residential Property (u/s 54)

Can I do the Above

Saurabh Maheshwari (B.com,ACA) (5923 Points)
Replied 08 February 2013

Dear friend if you are investing in Res,. HP u/s 54F then you will get exemption for the same.

But remember that lock in period of that invst u/s 54F is 3Yrs.So, if you ar now selling that RHP(as invest u/s 54F) you can claim exemption u/s 54...their is no provision denying the same. But here your cost of that invst u/s 54F will be reduced because you have sold that invstd RHP u/s 54F before 3 yrs.

In short, for claiming exemption u/s 54 , you will loss the benefit of earlier cliamed exemp u/s 54F.