24 December 2013
sec 54 mentions that any LTCG arising due to transfer of Long Term Capital Asset, being a building or land appurtenant thereto and being a residential house(the income of which is chargeable U/H "H.P" & the assessee has purchased or constructed a residential house using Capital Gains arising out of above sales.
My question is whether a plot(with no building) allotted by HUDA can be treated as residential house & therefore exemption u/s 54 can be claimed on sale of such plot ?
25 December 2013
but in that case there was a building there earlier, but in case of vacant plot there wasnt any building on it, so it is not land appurtenant to any building.
25 December 2013
Plot is neither a residential house nor it is land appurtenant to the residential house.
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For exemption of capital gains - Section 54F will be applicable where the assessee can obtain full exemption if he invests entire sales consideration into a residential house within the stipulated time. .
25 December 2013
Agree with Experts, It will be treated as Capital asset.. However Exemption in Case of 54 will not be allowed.. However, 54F will be allowed...
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