An assessee had a piece of land "A" and a residential flat. He sold the plot 'A' and invested the entire sale consideration in buying another land 'B' for residential house. He now wants to sell the flat and with the sale proceeds he wants to construct a residential house on Land "B". Can he awail deduction u/s 54 F in case of sale of land 'A' and u/s 54 in case of sale of flat.?
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Capital Gain
Replies (2)
Ya he can awail exemption, but the construction shoulb be completed within 3 year from the date of sale agreement
Hi Arun,
You have 3 options:-
1) Sale proceeds any long term capital assets can be reinvested in Residential House is exempted (u/s 54F);
2) In addition you invested in notified bonds up to Rs.50 Lakhs this ia exempted from tax (u/s 54EC);
3) In case of residential house, the restriction is reinvested in similar assets before 1 year or after 3 years of transfer (sale).
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