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Section 54F exemption in case of multiple properties

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Anonymous

Software Engineer

32 Points Posted on 07 August 2024

I have a joint ownership for a residential land plot with my sibling. We haven't constructed any house there. We are not planning to contruct any house there in next 3-4 years. We purchased this property in September 2023. This was purchased without any section 54F claim.

Currently I am planning to buy new residential plot/house with my capital gain. If I buy land plot, I will immediately start construction of house. Can I claim section 54F benefit for new property? Will it create any problem since I already have a residential plot?

Replies (6)

Quick Summary

This discussion clarifies the Section 54F exemption for capital gains tax when an individual owns multiple properties. It addresses whether owning a residential plot without construction affects the claim for a new property, and confirms that the exemption is generally available as long as you don't own more than one constructed house property at the time of the claim. The conversation also touches upon the definition of 'house property' and the implications of purchasing other plots for investment.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121528 Points Posted on 07 August 2024

No. No problem to get the exemption u/s. 54F IT act.

Anonymous

Software Engineer

32 Points Posted on 07 August 2024

So, I can claim 54F benefit/exemption for new property and make sure to construct house in 3 years?

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121528 Points Posted on 07 August 2024

Yes, only if you do not have more than one house property at the time of the claim.

Anonymous

Software Engineer

32 Points Posted on 07 August 2024

I have few clarification questions -

Are foreign stocks (capital gain from foreign stocks) applicable for section 54F? I believe they are.
If you do not have more than one house property at the time of the claim =>
1. Does it mean I should not contruct any new house on different property in next 3 years and existing residential plot should not be used for house contruction? I should constuct house on the new property where I have claimed section 54F only?
2. Can I still buy other residential plots for investment purpose without section 54F? Will it cancel my any previous section 54F exemption in 3 years? I will not contruct any house there.
What do you mean by house property? Do you mean a independent house/Flat? Does it contain land plot (without any house) as well?