06 January 2009
Case pertains to exemption of capital gains tax under Section 54F of Income Tax Act. The capital gain of Rs. X accrued in Dec 2006. As per sec 54F, the amount of capital gains should be used for construction of a house with in 3 years, to claim exemption from income tax. I had purchased a Plot (P) for Rs. Y during Dec 2007 for construction of house and balance i.e. Rs.(X-Y) stands deposited in Capital Gains Saving Scheme. Meanwhile I have liked another Plot (Q) for construction of my house. Now, I wish to sell the Plot (P)purchased earlier, buy Plot(Q) and construct a house on this Plot before Dec 2009. I would like to know my Tax liability in the above case. Thanks
Guest
Guest
(Expert)
16 January 2011
Investment in new plot will not be eligible u/s 54F if no construction is made thereon but this issue can be contested ?
CAclubindia
