Capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 January 2012 AN INDIVIDUAL IS HAVING DUPLEX AND PLOT IN HIS OWN NAME.HE IS ALSO HAVING PLOT IN THE JOINT NAME OF HIMSELF AND HIS WIFE.
NOW HE WANTS TO SELL HIS PLOT(LONG TERM CAPITAL ASSET)AND ALSO WANT TO CONSTRUCT RESIDENTIAL HOUSE IN PLOT(WHICH IS IN JOINT NAME WITH HIS WIFE).PLZ TELL WILL HE GET ANY ADJUSTMENT OF SECTION 54.
54F MIGHT NOT BE APPLICABE AS HE HAS DUPLEX AND 54 WILL NOT BE APPLICABLE AS HE HAS PLOT AND NOT RESIDENTIAL HOUSE WHICH HE IS SELLING.....PLZ TELL HOW AND WHEN TO SELL AND CONSTRUCT TO GET ADJUSTMENT OF SECTION 54....

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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01 January 2012 Here Duplex means a Single Residential Unit.
.
He can avail exemption from Capital Gains U/s 54F, which is arising due to sale of his plot and the sale proceeds from plot are being invested in the construction of a new house on the plot jointly held with his wife.

Mahesh Paryani

Mahesh Paryani (Expert)
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01 January 2012 Dear Sir,

section 54F prohibits the purchase or construction of more than one residential house.

in my openion you will still be able to apply section 54F and can get capital gain exemption subjected to other conditions are met.

Regards

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