08 December 2011
Can an assessee claim exemption u/s54F for a land purchased for construction of a residential house property 1 year before, the actual sale of a capital asset on which LTCG arises, and constructed a residential house property on that land purchased within 3 years from the date of actual sale of a capital asset on which LTCG arises.
Kindly advice me on this issue and also state the relevant case law if any.
Yes you can claim, provided the Land in the first case should be a non agricultural Land i.e, it should be a urban land and further it should be a Long term capital Asset.
Section 54 F is clear about it and therefore taking shelter of any case law if any does not arise.
Thanks
Regards CA. Lohith. J B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons
08 December 2011
Mr.Lohith thanks for your reply, still i am not very clear about it Section 54F states that assessee have to ,in case of, purchase RESIDENTIAL HOUSE PROPERTY either 1 year before or after 2 years from date of transfer in case of, construction of residential house property within 3 year after the date of sale. but my query is if an assessee purchase a LAND, ON WHICH RESIDENTIAL HOUSE PROPERTY IS CONSTRUCTED, AND NOT RESIDENTIAL HOUSE PROPERTY, 1 year before date of transfer of capital asset on which LTCG arises then can the assessee claim exemption u/s54F
08 December 2011
MR.Lohit thanks for the reply. Still i am not very clear about it Sec 54F states that a assessee has to, incase of purchase,a RESIDENTIAL HOUSE PROPERTY either 1 year before or 2 year after the date of transfer and incase of construction,within 3 years from the date of transfer but my query is can the assessee cliam exemption u/s54F if the assessee purchase a LAND, ON WHICH RESIDENTIAL HOUSE PROPERTY IS CONSTRUCTED, AND NOT RESIDENTIAL HOUSE PROPERTY, 1 year before the actual sale of a capital asset on which LTCG arises. and the construction of residential house property on such land is to be completed within 3 years from the date sale of capital asset Kindly reply for my query.
08 December 2011
MR.Lohith thanks for the reply. Still i am not very clear about it Sec 54F states that a assessee has to, incase of purchase,a RESIDENTIAL HOUSE PROPERTY either 1 year before or 2 year after the date of transfer and incase of construction,within 3 years from the date of transfer
but my query is can the assessee cliam exemption u/s54F if the assessee purchase a LAND, ON WHICH RESIDENTIAL HOUSE PROPERTY IS CONSTRUCTED, AND NOT RESIDENTIAL HOUSE PROPERTY, 1 year before the actual sale of a capital asset on which LTCG arises.
08 December 2011
MR.Lohit thanks for the reply. Still i am not very clear about it Sec 54F states that a assessee has to, incase of purchase,a RESIDENTIAL HOUSE PROPERTY either 1 year before or 2 year after the date of transfer and incase of construction,within 3 years from the date of transfer
but my query is can the assessee cliam exemption u/s54F if the assessee purchase a LAND, ON WHICH RESIDENTIAL HOUSE PROPERTY IS CONSTRUCTED, AND NOT RESIDENTIAL HOUSE PROPERTY, 1 year before the actual sale of a capital asset on which LTCG arises.
CAclubindia
