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QUERY RELATED TO U/S 54F CAPITAL GAIN

Tax queries 304 views 3 replies

Komal

student

91 Points Posted on 07 February 2022

I have sold a property on 11th Feb. 2020 and deposited the amount of capital gain arising from the sale of property in Capital gain account scheme (CGAS) on 14th Sep. 2020 which was before filing of the income tax return. Now 2 years have passed from the date of sale but still I have not purchased the new property. Please advise whether now I can claim the exemption u/s 54 F by purchasing a new property and construct the same before the end of 3rd year from the initial sale of property?

Replies (3)

Sarthak Kumar Dash

Student

232 Points Posted on 07 February 2022

Yes....
You can construct a Residential House (that includes cost of land, material and other things) within 3 years from the date of Sale and Exemption will hold good (Try to invest the whole Net Consideration otherwise you will get Proportional Exemption) Provided all other conditions for sec 54f is satisfied.

rama krishnan

12244 Points Posted on 08 February 2022

You would have claimed 54F deduction in A Y 2020-21 itself. now in order to avoid capital gains tax on unutilised amount in CGAS, you have to construct a residential property (includes land value) within end of 3 years from the date of sale of original asset

sabyasachi mukherjee

Profession Business

28207 Points Posted on 08 February 2022

If you do not construct a residential house within a period of 3 years you have to pay capital gains tax. Invest in infrastructure bonds which have a high nav value.