section 154F , if i purchase a plot and construct house on it. total of purchase of plot and construction cost will be allowed as deduction?
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Quick Summary
This discussion clarifies capital gains tax exemption under Section 54F of the Income Tax Act. It explains that if the full sale consideration from an asset is reinvested in a new house, the entire capital gain can be exempted. If only a portion is reinvested, a pro-rata exemption is available, calculated using a specific formula involving the reinvested amount and net sale consideration.