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Ltcg in case of sale/purchase of plot

Udgam Koomar (Tax Technologist) (1949 Points)

10 July 2018

A plot is sold last year and another plot os purchased this year of same value, can one get Capital Gain exemption in such case OR the purchased property can ONLY be a house to get exemption NOT Plot?? Or if the plot os bought then within 2 years house has to be constructed on it to get exemption benifit?

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Anjali P Nair (ACA,ACMA) (582 Points)
Replied 10 July 2018

1. Exemption under section 54 B can be claimed if

Agriculture land (urban) which has been used by assessee himself or by his parents for agriculture purposes during last 2 yrs of transfer has been transferred and purchased another agricultural land used for agriculture(rural or urban) .

2. Exemption can be claimed under section 54 F if house is constructed within 3 years of purchase of land and asessee doesnot own more than one residential house other than new asset as on the date of transfer.