LTCG exemption under section 54f on transfer of multiple plots

Yes, of course,,,, it can be....

20% is your gain margin.

If invested 50L u/s. 54EC.... equivalent to 2.50 Cr. sales consideration.

So for sec. 54F you have to invest 7.50 Cr for 100% deduction.

You are welcome ...               

A quiz for mind....

Suppose He had invested Rs. 50 lakhs in Sec. 54EC bonds...

& purchased a house property for Rs. 4 Crs. to claim deduction u/s. 54F.

What will be his tax liability?

Ans.  14 lakhs + surcharge + cess

Sir, can we claim interest paid on home loan as cost of improvement. if yes, then how can we apply indexation of interest amount as total interest relates to different years.

Its controversial issue. Few case laws are in support of claiming interest as COI, but in general AO would not allow. There is no clarity in act, so no guaranty that you also get same result.

Natural justice says, its the cost incurred by assessee when he paid only margin money and not full amount initially. So while taking indexation on COA, whether he will choose the agreement date or date on which he fully repaid his home loan. If first agreement date, he cannot take advantage of deduction of interest, as the principal amount he could not pay on first date.

Indirectly it harms the assessee who paid full amount initially.

In general, allotment letter is taken as date of acquisition, while registered sale deed value is taken as COA. No need of segregating or adding interest part.

Sir, Can we take construction extension fees & penal interest on late payment of installments to land authority as Cost of improvement. 

Construction extension fees can be considered, but none of the penalty, be it additional interest.

Construction extension fees can be considered, but none of the penalty, be it additional interest.

Sir, i need your guidance for  below case

My client has capital gain against two industrial plot Rs.3.5 Cr. (net receipt 7 cr.)   & there is LTCL on sale of one residential plot Rs.10Lakh (Net receipt Rs. 1 Cr.). for taking 100% exemption under section 54 F how much amount we need to deposit in CAGS account. 

My cleint wants to deposit 7 cr only In that case how we should approach to get the maximum benefit..