Capital gains on Newly purchased asset

Anu (zz) (134 Points)

06 February 2024  
Assessee sold House property in October 2021 and availed Capital Gain exemption as follows:
LTCG   101 lakhs      
Exemption u/s 54:          
  Investment in bonds within July 2022 50 lakhs      
  Planned to buy land and build house 51 lakhs      
In April 2023, he purchased land for construction for about 41 lakhs. In Feb 2024, he decides he
does not want to go through with the construction of house property and instead he is planning to
sell it in 2024-25 and surrender the 54F exemption claim for the land cost.  
Hence he will be taxed in the following manner:      
1. Rs.51 lakhs exemption u/s 54 becomes taxable in the FY 2024-25.    
2. Short term capital gains arise on the sale of land purchased in April 2023.  

He is also planning to make payment of advance tax towards tax on Rs.51 lakh.

Whether this approach is correct? This will help avoiding interest liability for FY 2024-25