30 May 2013
My wife recently sold residential plot of land in a society. No house was constructed. It was a long term property transfer (held for > 3 yrs).
We would like to benefit from LTCG tax provisions by purchasing another property (within 2 yrs).
1. Can we purchase land/plot OR it must be a constructed house only? 2. Which sections/sub-sections of sec. 54 should I read for details.
30 May 2013
As sec 54 is applicable on sale of residential house property, therefore the same is not applicable in your case. You can get benefit of the following sections-----
1. Sec 54EC -- If the long term capital gain is invested in the purchase of certain specified bonds within a period of 6 month of transfer of capital asset.
2. Sec 54F -- If the entire sale consideration is invested in the purchase of a residential house property within a period of 2 years of transfer of capital asset.But for this section, the assessee must not hold more than one house property on the date of transfer.
13 July 2013
If I had constructed a minimal temporary (low cost) residential structure, then would I qualify for exemption under section 54 (capital gain portion only)?
CAclubindia
