Exemption u/s 54f for capital gain on sale of property

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yogesh vijaykumar shah

Chartered Accountant

391 Points Joined March 2009

I have sold the house property situated in india of Rs. 56 lacs during the financial year 2015-16 i.e. Dec, 2015. The same was acquired in the year 2008-09. The expenses incurred on sale of this property comes to Rs. 55000. I have made registration for new house during the month July 2015 and paid towards Registration and stamp duty payment of Rs. 6 lacs and also paid total payment up to May 2016 of Rs. 24 lacs as advance f towards construction of house property which will be completed up to Oct, 2018. In this connection, I have following queries : 1. While calculating capital gain, can I avail exemption u/s 54F during the assessment year 2016-17 assuming the full capital gain invested before filing Return of income for A Y 2016-17 and I am owning more that one house other than new house as on the date of transfer. Kindly advise with provision of tax law . .

Replies (3)

sanjith kotni

Articled assistant

663 Points Joined November 2015

For claiming exemption from taxability of capital gains by availing benefits of sec54F net sale proceeds must be invested not capital gain raising there from....further construction or purchase can be within 1year before or 3years from the date of transfer.the amount remaining uninvested must be deposited in a scheduled bank before due date for filing returns specified under sec139(1)

CA Harshal Totla

Chartered Accountant

2229 Points Joined May 2014

exemption under section 54F is available only on sale of any Long Term Asset other than Residential Property. Since the capital asset in question is residential house property hence you cannot claim exemption under this section.