banner_ad

Capital gains on commercial land investment

Others 299 views 4 replies
I sold residential land and earned a capital gains of 40 Lakhs. I invested the entire gain amount in purchase of commercial land and planning to construct a small 1 Bhk house or single bedroom in commercial land.Can i take exemption under section 54F ? pls let me know
Replies (4)

Yes, provided the local authority sanction plan of residential unit over the land.

Also provided you construct the residential house within stipulated time period.

Ok...if I construct factory shed as well in commercial land with approval of local authority, can I claim capital gains exemption? pls confirm

The condition stipulated is for residential house.

If the land is larger in area, only the cost of land over which house is constructed would be considered for exemption.

Any other units constructed over rest part would be out of consideration.

Commercial purpose or residential purpose is irrelevant:
1. exemption available if for residential or commercial purpose.
2. but within the stipulated time.
3. with the approval of local authority.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 23 May 2026
Article Assistants

Acupro Consulting

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
26 May 2026
CA / MBA (Finance) / CMA / M.Com (Finance)

Sri Aurobindo Gnostic Centre of Education

New Delhi

CA

View Details
Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details