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Exemption u/s 54

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sandeep

student

23 Points Posted on 15 August 2016

Dear Friends

Assessee has LTCG on Residential Plot now if he invests in Residential house property i.e purchasing a plot and then constructing on it.and also buys a shop (commercial property) whether the exemption under 54 F is available to assessee on investing in above said Residential house property.

Your opinion will be of great help

Thanks & Regards

Sandeep Tanwar

Replies (3)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121521 Points Posted on 15 August 2016

By construction of a residential house within 3 years from the sale of earlier plot, over new plot to be purchased, will qualify for exemption of LTCG u/s. 54F, subject to satisfaction of other conditions of the section.

But section 54F allows CG exemption in the ratio of sale proceeds!!!

So, just calculate how you be able to invest in shop, if that is purchased out of the same sale proceeds? In that case again partial tax liability will remain.