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Capital gains

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vivek

manager

23 Points Posted on 12 January 2015

I have sold a land in Feb 14 for 27 lacs ( purchased in Jan 2009 for 7 lacs). I purchased a house for 36 lacs in May 2014 to save capital gains for the land sold in feb 14. Also i made a long term capital gains on sale of unlisted shares in my friends company in June 14 of 3 lacs. Can i claim exemption in both the capital gains ( land in feb 14 and ltgc in unlisted shares of 3 lacs in june14) against the house purchased for 36 lacs in may14 under section 54f

Replies (1)

Raphael

Chartered Accountant

164 Points Posted on 13 January 2015

Dear Vivek,

Both the transactions occur in different financial years. Hence I believe that the exemption on 54F will be resticted to only one capital gain. This i feel is the conservative approach. On the other hand you can take a stand wherein you can claim 54F in the first year and in the second year the unexhasuted portion of purchase value can be applied as exemption u/s 54F. But this view in my opinion will not sustain and will end in litigation.