I own 2 plots of land(long term capital assets). I have decided to sell one plot and construct a house on another plot. Can I claim any exemption for the capital gain arising on sale of the one plot and reduce my taxes?
what if i start my construction of house before hand and then later sell the other plot?
can anyone please help?
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Capital Gain exemption?
Replies (4)
Yes it will exempt u/s 54 F
but the condition is that u doesn't own any residential house and u should invest the entire sale proceed must have been reinvested into construction of residential building with 3 yrs from the date of transfer..
but the condition is that u doesn't own any residential house and u should invest the entire sale proceed must have been reinvested into construction of residential building with 3 yrs from the date of transfer..
Ohh i do own a residential house so i wont be able to claim exemption then. thanks alot.
@ kirti
Do not get disappointed.
You get exemption under 54F if you use plot sale money to construct residential house on another plot. Construction you have to finish in 3 yrs from date of plot sale.
Deduction will be to the extent you utilise plot sale money. eg. if you use 70% of plot sale money on construction then you get 70% of capital gain exemption.
Do not get disappointed.
You get exemption under 54F if you use plot sale money to construct residential house on another plot. Construction you have to finish in 3 yrs from date of plot sale.
Deduction will be to the extent you utilise plot sale money. eg. if you use 70% of plot sale money on construction then you get 70% of capital gain exemption.
@ kapadia pravin but is there a condition that one should not own more than one residential house? bcoz i already own 2 flats.
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