23 July 2024
Sir, Whether deduction under section 54 can be availed in respect of amount received on compulsory acquisition of residential house property by railways, undertaking to buy or construct another house property. Also, when we undertake to buy / construct a new house property by availing the deduction under section 54 or 54F, whether the cost of site is also considered for new construction of house property or only super structure investment is to be considered. Thanks in advance and Regards.
23 July 2024
Compulsory acquisition under RFCTLAAR act, 2014 is tax exempt.
If it be taxable by any other provision/s, you can get exemption under sec. 54 IT act. Total cost of construction along with land value gets exempted from such LTCG.
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