Vikas (Accountant) 23 November 2016
In the FY 2015-16, one urban land is sold for value Rs.400000/- purchase in the FY 2011-12 for Rs.150000/-, after receiving the sale consideration the same amount is been used for additional construction in existing residential building (have only one residential building).
Can we claim exemption from long term capital gain u/s 54F?
Dhirajlal Rambhia (KVO Merau Kutchh) 24 November 2016
Exemption u/s. 54/54F is available only when the investment is in the consideration of a residential property and not for investment in modification or renovation. However, addition of a floor of a self contained type to the existing house would qualify for exemption.