TWO PLOTS OF LAND ORGINALLY ALLOTTED IN NAME OF MY MOTHER. MOTHER DIED BUT WILL REGISTERED AFTER DEATH OF MOTHER. PLOTS OF LAND INHERITTED BY ME AFTER DEATH OF MY MOTHER. AND I SOLD THEM DURING THE FINANCIAL YEAR 2013-14 AND ALSO INVESTED THE WHOLE AMOUNT IN BOOKING OF ONE RESIDENTIAL FLAT. WILL THE AMOUNT BE EXEMPT U/S 54F IRRESPECTIVE OF THE FACT THAT SALE WAS OF TWO PLOTS OF LAND AND INVESTMENT MADE IN ONE RES.UNDER CONSTRUCTION FLAT. PL. CLARIFY
THE AMOUNT BE EXEMPT U/S 54F IRRESPECTIVE OF THE FACT THAT SALE WAS OF TWO PLOTS OF LAND AND INVESTMENT MADE IN ONE RES.UNDER CONSTRUCTION FLAT. But should not own more than one residential house, other than the new asset, on the date of transfer of the original asset.
Dear Ajay,
Yes the amount invested by you will be exempt under section 54F is for Capital Gain on transfer of a Long term Capital assets other than a House Property.
This is subject to certain caonditions:
Amount of Deduction : (If following condition are satisfied)
if the cost of new house is not less than the net consideration in respect of the capital assets transferred the entire capital gain arising from the transfer will be exempt.
Also if any untilised amount is remaining then deposit the amount under the Capital gain account Scheme. (Please Consider other condition also under sec 54F as on breach the exemption granted under the section may be withdrawn)
Regards
CAclubindia
