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long term capital gain

Others 200 views 8 replies
Hello, I have sold one residential plot in 2 parts. half amount I received in January 2018 and other half in may 2018. total amount I received invested in purchase of one bigger residential plot in june 2018 itself. but will built a house in it in 2 years time from my savings money as entire sum is invested in plot. please clarify if I am satisfying all conditions of long term capital gain exemption
Replies (8)
Yes, If you have invested the capital gain amount from sale of Residential Plot into Another Land/Plot within 2 years from the date of Transfer then you'll be allowed Capital gains exemption u/s 54B.

Building of House is irrelevant for the purpose of exemption u/s 54B. You'll get the exemption even if you have not built house on it.

Thanks.
You will be for long term capital gain exemption
thanks to all. but here main concern is money received in 2 different financial year but invested in one. will it be okay
As I said If money invested in Land within 2 years from the date of transfer then exemption would be allowed. Money received in January 2018 if that invested before Jan 2020 even then it would be allowed.

You have invested both the amounts in 2018 itself. So it would be allowed under 54B.

Thanks.
@ nitish, IN my opinion, the property sold was residential plot and not urban agricultural land for claiming deduction under 54B.

since, the property sold was residential plot, it's eligible for deduction only u/s. 54f /54GB etc subject to conditions...

the date of registration is relevant here.... so in order to claim deduction under 54f, the entire sale consideration to be invested in new asset on or before filing the ROI or to be deposited in capital gains account scheme and the same should be appropriated towards purchase or construction of residential property within 2 years or 3 years respectively. correct me if I am wrong
@ rama krishnan Yes you are right buddy. I miataken RESIDENTIAL plot for Urban agriculture land. Exemption would be allowed under section 54F/54GB. Thanks.
thanks for correction. so I think as per my investment dates. I satisfy all the criteria
yes... but you need to construct the house within 3 years from the date of sale..

@ nitish thanks for confirmation


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