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Section 54 54F

Nostradamus !! (154 Points)

27 August 2017

Can two residential land property sold and capital gain thereon be invested in one residential house ??

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160484 Points)
Replied 27 August 2017

Yes, if both properties sold in same financial year.....

Nostradamus !! (154 Points)
Replied 27 August 2017

thanks please clearfy further in case:
In April first property sold indexed LTCG 50L
In September same FY property bought for 90L all inclusive
In March same FY second property sold indexed LTCG 40L
In above example since transactions carried out in same FY are we allowed to adjust capital gain I mean to say can we sell second property after we buy?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160484 Points)
Replied 27 August 2017

Yes, if property purchased for 90L in september was ready/constructed house property in India.

Secondly, note that u/s. 54F the sell proceeds invested in house property is considered for Cap Gain exemption, and not just Long Term Capital Gains.

For example if first plot was sold for 1.00 Cr (though LTCG reduced to 50L), your investment in house property should be 1.00 Cr or more for exemption of total LTCG, u/s. 54F.

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Nostradamus !! (154 Points)
Replied 27 August 2017

thanks®ards

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160484 Points)
Replied 28 August 2017

My Pleasure.........

Nostradamus !! (154 Points)
Replied 13 December 2020

Sir please help
Funds parked in capital gain account fully utilized to purchase new properly is there any need to disclose the same in IT
if yes
how & where?
thanks