Section 54 exemption

hello everyone,
i want to claim sec 54 exemption on sale of building by constructing new one. I have land.
can anyone tell me the full procedure from starting to end and all the related documentation?

Thanks in advance for your help
Replies (2)
Under section 54 - Deduction is available to you on LTCG from sale of building being a residential house....
if the assessee constructs a new residential house within a period of 3 years from the transfer of old building.

if cost of construction is > LTCG then 100% deduction or otherwise proportionately.

Note that Sale money of old building you will have to keep in a bank account under capitAl gain account scheme (to be transferred to CGAS açcount before due date of filing return of Income)

And for construction purpose you have to withdraw from CGAS Açcount fromTime to time.

1. To add further, construction should have been completed within 3 years from the date of transfer. 
2. The application should be made for each withdrawal from CGAS. Closure requires AO consent. 
3. Payment to contractors should be either by DD or cheque from CGAS. 
4. Just to clarify, the land amount should be excluded while computing capital gains. 
Please correct me if the above solution has an alternative view. 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
28 August 2026
Audit Manager

K A R M & CO

Mumbai

CMA

View Details
Company
ARTICLESHIP 25 August 2026
CA Article's

Saini Pati Shah & Co LLP

Mumbai

CA Inter

View Details
Company
19 August 2026
PAID ARTCILE ASSISTANT

My Legal Tax Consultants Pvt. Ltd.

Noida

CA Inter

View Details
Company
17 August 2026
Chartered Accountant with US GAAP Experience

Austin Med Solutions Pvt Ltd

Bengaluru

CA

View Details
Company
21 August 2026
Accountant

A G International

Kolkata

B.Com

View Details
Company
29 August 2026
Chartered Accountant

Velionit Consulting PVT LTd

Mumbai

CA

View Details
Company
ARTICLESHIP 14 August 2026
Article Assistant

N J Suresh & Associates

Bengaluru

CA Inter

View Details
Company
11 August 2026
Chartered Accountant

Aviv Global Pvt Ltd

Ahmedabad

CA

View Details