Exemption u/s 54/54f

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 September 2013 can we avail exemption of purchase of residential plot, but no construction done within 3 yrs of sale -u/s 54 or 54f towards long term capital gain on sale of residential plot

CA Pallav Singhania

CA Pallav Singhania (Expert)
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14 September 2013 U/S 54F
The assessee has purchased, within one year before the date of transfer or two years after the date of transfer or constructed within three years after the date of transfer (or from the date of receipt of compensation in the case of compulsory acquisition), a residential house (hereinafter referred to as “new house”).

Otherwise the exemption will be roll back and there would be long term capital gain...

Querist : Anonymous

Querist : Anonymous (Querist)

16 September 2013 thanks aaryan

i.e. for claiming deduction u/s 54 , only purchase of residential plot is not sufficent , assessee has to construct or purchase house within specified period,so in this case asseess can't get exemption.

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CA Pallav Singhania

CA Pallav Singhania (Expert)
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16 September 2013 No, only purchase of plot is not a valid criteria..
You have to construct or buy a residential property for claiming the exemption...