Reinvestment of long term capital gain

Hello Sir,

Couldn't find any case law matching ur case....

But according to me investing in a plot initially and with the further intention to construct residential house property is allowable u/s54 of the act.

Care should be taken that construction should be completed before Dec 2014 (i.e. within 3years from the date of Capital Gain)

One more interesting thing...

It has been clearly stated in the act that construction should be completed within 3years....

So it is irrelevent that when construction was started....

If it is possible to stretch the period of sale i.e. instead of Dec 2011 to Mar 2012 then ur cut off date of completion of construction shall be Mar 2015...

Regards

Mr Raveendran,  purchase of plot wud be treated as an eligible investment u/s 54 for claiming exemption,  provided that the construction is comeplted within the stipulated time.  i.e.3yrs from the date of trasnfer.

pleaes refer the below link for more clarification:

https://taxworry.com/can-capital-gains-exemption-us-54f-or-54-be-claimed-for-buying-land-also/