Long term capital gains tax - reinvesting in a property

You can get duduction u/s. 54F, as you have sold a PLOT. So, if other canditions of the saction are satisfied, you can get benifit to the extent of amount out of your total sales proceeds, by constructing ONE house property over any one plot/joint plot, within specified time limit. Till then deposit the unused amount in Capital Gains account scheme.

Thank you very much Mr Dhirajlal

My query is I am buying 2 plots of 2280 square feet x 2, For the Sec 54 reinvestment scheme, should I register both plots in 1 single sale deed or can I register as 2 separate sale deeds. If I register as 2 sale deeds will i get exemption u/s 54 only for 1 plot or will i get exemption for both plots. Your advise will be very much appreciated

regards
 

Krishnan

"If I register as 2 sale deeds will i get exemption u/s 54F for both plots."

Yes, provided you plan to construct ONE house over both of them

I have another question linked to this. I have a residential land and an apartment for last 8 years. If I sell the land (not the apartment) then can I reinvest the LTCG in another land or apartment to save tax? The full amount has to be reinvested or only the LTCG? The LTCG is much higher than Rs. 50 Lacs.

I was told by someone that under new rules this is not permitted. One can reinvest and save LTCG tax ONLY if the person has only ONE residential property. 

Please clarify.

"The full amount has to be reinvested or only the LTCG?"

When you sale land, for exemption u/s. 54F, the sale proceeds is considered for exemption and not just gains.

Secondly, the condition is, you should not have more than one house on the date of sale of the land. So, need not worry for the said ONE apartment.

Finally, you can also avail exemption u/s. 54EC, investment in Capital Gains Bond, in addition to investment in new house porperty.

1. Exemption available for A Residential House or Apartment. (not for just land)

2. For sale against any house property, section 54 is attracted, there the condition of previously owned residential property is not there. You may have any number of house properties, still exemption u/s. 54 can be availed.