Capital Gain

CA Sanjay Baheti (PROPRIETOR) (1155 Points)

08 March 2010  

My Client being an  Individual having a resedential Plot taken on lease in Rajasthan since 1993. He has incurred total amount  Rs.69003/- till 30.06.19999 towards cost of acqusition & Registration charges. Then He sold this Plot in Aug,2008 for a sale consideration of Rs.7,00,000/- through cash. Concurrently He purchased another Resedintial Plot in Ahmedabad on 16.10.2008. The Purchase consideration for the same is Rs.700,000/-

Now My question is whether he can claim long term capital gain to be  exempt u/s 54 of I.T.Act as the entire capital gain is invested in another resedential Plot within the prescribed time.


Sanjay Baheti