Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Purchase of land and construction of house tax exemption

375 views

Save Share

Murali Rotti Sathyanarayana

Manager of Accounts

165 Points Posted on 03 June 2023

There is a sale of residential house property in June 2022..Investing the gains in CGAS now..in future can we purchase a plot and then construct a residential house with in three years to claim the exemption? Cost of land will also be considered for tax exemption?

Replies (3)

Quick Summary

This discussion clarifies the tax exemption rules for capital gains made from selling residential property. If you reinvest these gains into purchasing a plot of land and constructing a house within three years of the original sale, you may be eligible for tax exemption. The cost of the land itself is also considered when calculating the exemption.