Query regarding what to Fill in 5 columns of 54F Deduction of Schedule CG

1. Yes

2. It should be, but in your case land cost cannot be included.

3. Occupation certificate date.

4. No need.

5. End date.

Thanks for the reply but your response on second answer created a confusion. What I have seen and validated is the we can claim 54F for both Land + Construction cost and that actually makes the total cost of House. And actually I bought a old house demolished it and Reconstructed it.

So overall I know I can claim deducation for 30.5 Lakh under 54F. But as you say land cost cant be included, can you please clarify why 14 lakh doesnt count? 

Hello All,

Can you please reclarify why old house buy cost of 14 Lakh cannot be claimed in 54F? Or I am again misunderstanding the reply.

The land was bought on June 2022 which still is within 1 year before time frame of Selling of Asset(stock). 

[Capital gain on transfer of certain capital assets not to be charged in case of investment in residential house.

54F. (1)[Subject to the provisions of sub-section (4), where, in the case of an assessee being an individual or a Hindu undivided family], the capital gain arises from the transfer of any long-term capital asset, not being a residential house (hereafter in this section referred to as the original asset), and the assessee has, within a period of one year before or [two years] after the date on which the transfer took place purchased, or has within a period of three years after that date constructed, a residential house (hereafter in this section referred to as the new asset); the capital gam shall be dealt with in accordance with the following provisions of this section, that is to say,—

(a) if the cost of the new assets is not less than the net consideration in respect of the original asset, the whole of such capital gain shall not be charged under section 45;

(b) if the cost of the new asset is less than the net consideration in respect of the original asset, so much of the capital gain as bears to the whole of the capital gain the same proportion as the cost of the new asset bears to the net consideration, shall not be charged under section 45:

Provided that nothing contained in this sub-section shall apply where the assessee owns on the date of the transfer of the original asset, or purchases, within the period of one year after such date, or constructs, within the period of three years after such date, any residential house, the income from which is chargeable under the head "Income from house property", other than the new asset.

Explanation : For the purposes of this section,—

So basically you are pointing that either within 3 year time frame I can construct or either buy a land for house. I can only claim one of the either and not the both. And once I claim than for next 3 year would be blank and than I can claim again accordingly. 

Cool. Thanks 

The clarification is for your query, whether land cost be included in deduction u/s. 54F...

For this clarification, one of my old CA who passed away pointed me out a judgment for this "or"

"5. For qualifying exemption under section 54F, assessee’s ownership and domain over the asset is a must right from the sale of original asset till the purchase and/or construction of the residential house i.e., the “new asset. (Prakash v. ITO, ITA NO. 15 of 2002 Dated : September 12, 2008). "

This was sourced from Tax guru website and have copyright on the content   

And when asking then why "or" was written in the first place, He told me that it was to avoid the confusion that one might think we must buy and construct then only we can claim the deduction.

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