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Capital Gain Exemption u/s 54F

Lijin M (Article) (53 Points)

01 October 2018

Sir,
I sold one of the land which was in my name and used the sale consideration to build a new house but New house constructed in my Sister's name but we all are staying together.

Whether I'm eligible to claim exemption us 54F or not ?

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3 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195608 Points)
Replied 01 October 2018

As per plain reading, Assessing Officer would disallow the exemption. You may get relief during appeal with higher authority.

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Lijin M (Article) (53 Points)
Replied 01 October 2018

Sir, then how can get exwmption on this ?
If I transfer land ownership to my sisters name before sale as gift and use the sale consideration to build new house is possible ?
Then she will be eligible or not to claim exemption us 54F ?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195608 Points)
Replied 01 October 2018

1. Yes.

2. Or build new house in joint ownership, after obtaining permission to build house from land owner. (over which house is to be constructed, if already purchased)

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