Long term capital exemption query

is there any provision under the act,
for exemption if land is sold, and the sum availed is invested in new property but the assessee already has two properties and a period of six months has been elasped
Replies (6)
purchase agricultural land and claim deduction u/s 54B

Yes, u/s 54F, provided assessee fulfills below mentioned conditions :

1.Gain is Long term

2.Land sold is not Agricultural Land

3.Assessee purchase ONE house within 1 yr before the date of transfer or 2 yrs after or construct ONE house within 3 yrs after the date of transfer.

4.Assessee do not sell this house within 3 yrs of purchase or construction

5.This new house purchased or constructed must be situated in India

6.Assessee should not own more than 1 residential house (other than the new one) on the date of transfer

7.Assessee do not purchase within a period of 2 yrs after such date or construct within a period of 3 years after such date any residential house (other than the new one).

When Assessee satisfy these conditions and invest entire sale proceeds towards the new house – he/she won’t pay any tax on  gains. However, if he/she invest a portion of the sale proceeds, the exemption will be the proportion of the invested amount to the sale price or exemption = cost of new house x capital gains/net consideration.

Now check with Assessee if he is having house property more than 1 on the day of purchase and check other conditions too.

ASSESSEE DOES HAVE 2 HOUSES BEFORE THE NEW HOUSE

If he fulfills all other conditions he will be eligible for exemption under above section as per specified calculation.

Fully agree with ruchika somani

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