Purchase of plot from proceeds of sale of another plot

Hi,

I sold a plot (say plot A) last year (Nov 2018) which I had held with me for 10 years. I have not yet put that money in Capital gains account scheme. 

Now, I have used that money to buy another plot (last month June 2019). On this newly purchased plot, I have plans to construct a house in about 2 to 3 years time.  Is my LTCG on plot A fully exempted.? Should I be mentioning this LTCG in this year's IT returns or can I mention it in IT returns after 2-3 yrs (i.e.after completing construction of house in plot B).?

regards,
Raghunath

Replies (5)

Unless you complete the construction of HP over the new plot within 3 years from sell of first plot, deduction u/s. 54F cannot be claimed. (assuming other conditions as specified u/s. 54F are satisfied)

Yes, you have to report the sell transactions in current ITR with the exemption claimed.

Thank you Sir. That is clear to me now.

regards,
Raghunath

Hello Sir, 

But during filing ITR for FY 2018-19, when I enter the details of plot sale under the capital gains section, it will show up as outstanding tax amount still to be paid. That is, how to mention this sale transaction in the ITR filing.?

regards,
Raghunath

Claim Exemption u/s. 54F; Fill the tab just below the capital gains declaration.

Thank you. I was able to file the ITR successfully.

regards,
Raghunath

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