Sir
1.I Have sold a house site and got capital gain.
2. But before selling this house site,I Have purchased a residential property from my own funds. Can I say the capital gain arrived from the property sold has been utilized for the purchase of this residential property?
3. Can I utilize the capital gain arrived from the house site sold for purchase/construction of a commerical complex?
Please reply
Thank you.
To get exemption from capital gains u/s 54F, the net sale consideration from sale of original asset must be invested in purchase or construction of house property within the prescribed time limit. Thus it is required to be shown that you have invested sale consideration in purchase or construction of new residential house property. If you invest the sale proceeds in construction of commercial complex, no exemption will be available to you u/s 54F.
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