Long term capital gain on sale of land

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 March 2015 THE NET LONG TERM CAPITAL GAIN ON SALE OF LAND (SALE CONSIDERATION 20 LACS) IS RS 5 LACS, THE SAME HAS BEEN USED IN CONSTRUCTION OF A RESIDENTIAL HOUSE, ON AN OLD PLOT OF LAND ALREADY OWNED BY THE ASSESSEE SINCE 20 YEARS, WILL THIS CONSTRUCTION COST BE ELIGIBLE FOR ECEMPTION U/S 54F. WHAT WILL BE THE EFFECT IF :-
1) THE ASSESSEE HAS ONE MORE RESIDENTIAL FLAT AT THE TIME OF SALE OF THE SAID LAND
2) IF THE ASSESSEE DOES NOT HAVE ANY OTHER RESIDENTIAL PROPERTY AT THE TIME OF SALE OF THE ABOVE PLOT OF LAND
PLS GUIDE ME.
REGARDS

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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13 March 2015 Yes you are eligible for section 54F deduction. However you have to invest the entire sale consideration in construction of new house property otherwise only proportionate benefit will be available. If you own more than one house at the time of sale of original asset you will lose exemption u/s 54F.