Re investment of ltcg

Ltcg  reinvestment of total profit on vacant residential site, without construction of house building. What happens if house building is not constructed within 3 years

Replies (5)
Quick Summary
This discussion clarifies the rules surrounding Long Term Capital Gains (LTCG) reinvestment when selling a vacant residential site without immediate house construction. It explains that if a house isn't built within three years, the claimed LTCG exemption may become taxable. The advice also touches on whether building a small watchman shed qualifies as a residential house for tax purposes, stating it likely does not, as the property must be wholly used for residential purposes.

The LTCG exemption claimed over the plot gets taxable, in the 4th year.

Sell of asset long term Capital gain invest in house property .

Can I build small watchman shed, and secondly what is the definition of residential house according to income tax department 

Yes, but that will not be 'A residential House property"

Residential house property means all types of property which wholly use for residential purpose only. It means commercial property or land are not included under residential house property.

No you will not get any benefit.

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