Capital Gain Tax Exemption U/S.54 F

Dear Friends,

Please clarify whether the same money from the sale of land has to be used for making investments in house property to avail exemption u/s 54F.  In this case, he paid all money for the purchase of the house property from his own savings.  Later, he sold a commercial property with a capital gain of Rs.32 lakh.  Can he avail exemption from capital gain tax?

Regards,

Jerry

 

 

Replies (2)
Quick Summary
This discussion clarifies whether the exact funds from selling land must be reinvested in a house to claim capital gains tax exemption under Section 54F. The consensus is that while the same money isn't strictly necessary, all other conditions of Section 54F must be met. This is relevant for individuals who used their own savings to purchase a property and later sold commercial property with a capital gain.

Not at all. The same money need not be invested for sec. 54/54F deduction claim.

But all other conditions of sec. 54F need to be fulfilled.

Agree with above

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