Dear Friends,
I have sale proceeds of Rs.80 Lakhs on sale of Land and earned LTCG of Rs.70 lakhs after indexation, now out of above fund I want to invest Rs.60 Lakhs in purchase of new Flat and thereafter separetly want to spend Rs.20 lakhs for interior decorater and furniture within time allowed u/s 54 F.
Whether I will be eligible for Exemption/ Deduction of Rs. 20 Lakhs for Investment in furniture & fixtures and interior decoration??
Kindly share your expert knowledge and opinion .
Dear Bhupendra
Sec 54F talks about purchase of house. In your case Rs.20 lacs is proposed to be spent in interior decoration and purchase of furnitures. Certainly this is not in the nature purchase of house but partially improvement of house and purchase of other assets which are not eligible for exemption. But if you buy a flat with furnitures etc the the entire amount is eligible for exemption u/s 54F. Normally only the amount paid to the seller/developer towards purchase of house is considered for exemption.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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