Cg on commercial property

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does any exemption from capital gain available on selling of building which is commercial in nature other than investing the sale proceeds into prescribed bonds
Replies (2)

Section 54F i.e. investment in residential HP

Yes,Exemption u/s 54F is available.

Any Gain arising to an individual or HUF from the sale of any Long Term Asset other than Residential Property shall be exempt in full, if the entire net sales consideration is invested in

  1. Purchase of one residential house within 1 year before or 2 years after the date of transfer of such an asset or in
  2. Construction of 1 Residential House within 3 years after the date of such transfer

In case the whole sale consideration is not invested and only a part of the sale consideration is invested, exemption shall be allowed proportionately i.e.

Amount Exempt = Capital Gain  X   Amount Invested/Net Sale Consideration

The above exemption shall be available only when the assessee does not own more than 1 Residential House Property on the date of transfer of such asset exclusive of the one he has bought for claiming exemption under section 54F.


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