Capital gain u/s 54f

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

09 May 2017 One of our clients sold shares of his private company and is investing the amount for construction of residential house property. He already has ONE house in the city in his name.
Will he get claim u/s 54F and if yes, will he also get it for the amount invested in land or only construction cost.

Amol S Joglekar

Amol S Joglekar (Expert)
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09 May 2017 since your client has one house, s/he can claim exemption u/s 54F.
Cost of land + cost of construction qualifies for exemption

Studentsca

Studentsca (Expert)
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09 May 2017 If the Shares are long term then yes he will get Exemption US 54.

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Expert : Anonymous

Expert : Anonymous (Expert)

09 May 2017 You can claim exemption only in 54F. Both land & construction cost allowed as deduction in proprtion of cost to net sale consideration. Also exemption is available only for Long term capital gain i.e. sale shares after holding of 1 year.