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Clarification on 54f

Tax queries 422 views 3 replies

I am planning to sell a plot and buy a residential house with that amount. I already own another house and have a flat (under sale agreement) which is under construction and yet to be registered.

Will I be able to claim LTCG tax benefit in this case.

Replies (3)
yes exemption of sec 54 is available if you sell plot and purchase new residential property. but sale of under construction flat will be taxable when it is sold.
in 54f, there is a clause that peraon should not be owning more than one property apart from new one. doesn't this under construction flat comes under 2nd property? what will happen when flat construction gets completed and registry happns which is expected in next financial year.
No. The under construction flat is not property but a right in the property and hence u are the owner of only one flat. So u can claim exemption under section 54F. Also u will have to make sure that u donot take possession of the. We flat in the next two years as there is a another condition which says that asessee cannot buy any house for two years from the year in which sec 54F is claimed.


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