Claim of exemption u/s 54f

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suthaya (Querist)
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08 December 2011 Can an assessee claim exemption u/s54F for a land purchased for construction of a residential house property 1 year before, the actual sale of a capital asset on which LTCG arises, and constructed a residential house property on that land purchased within 3 years from the date of actual sale of a capital asset on which LTCG arises.

Kindly advice me on this issue and also state the relevant case law if any.

CA. Lohith Jagadeesh

CA. Lohith Jagadeesh (Expert)
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08 December 2011 Hi,

Yes you can claim, provided the Land in the first case should be a non agricultural Land i.e, it should be a urban land and further it should be a Long term capital Asset.

Section 54 F is clear about it and therefore taking shelter of any case law if any does not arise.

Thanks

Regards
CA. Lohith. J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons

suthaya

suthaya (Querist)
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08 December 2011 Mr.Lohith thanks for your reply, still i am not very clear about it
Section 54F states that assessee have to ,in case of, purchase RESIDENTIAL HOUSE PROPERTY either 1 year before or after 2 years from date of transfer
in case of, construction of residential house property within 3 year after the date of sale.
but my query is if an assessee purchase a LAND, ON WHICH RESIDENTIAL HOUSE PROPERTY IS CONSTRUCTED, AND NOT RESIDENTIAL HOUSE PROPERTY, 1 year before date of transfer of capital asset on which LTCG arises then can the assessee claim exemption u/s54F

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suthaya

suthaya (Querist)
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08 December 2011 MR.Lohit thanks for the reply. Still i am not very clear about it
Sec 54F states that a assessee has to, incase of purchase,a RESIDENTIAL HOUSE PROPERTY either 1 year before or 2 year after the date of transfer and incase of construction,within 3 years from the date of transfer
but my query is
can the assessee cliam exemption u/s54F if the assessee purchase a LAND, ON WHICH RESIDENTIAL HOUSE PROPERTY IS CONSTRUCTED, AND NOT RESIDENTIAL HOUSE PROPERTY, 1 year before the actual sale of a capital asset on which LTCG arises.
and the construction of residential house property on such land is to be completed within 3 years from the date sale of capital asset
Kindly reply for my query.

suthaya

suthaya (Querist)
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08 December 2011 MR.Lohith thanks for the reply. Still i am not very clear about it
Sec 54F states that a assessee has to, incase of purchase,a RESIDENTIAL HOUSE PROPERTY either 1 year before or 2 year after the date of transfer and incase of construction,within 3 years from the date of transfer

but my query is
can the assessee cliam exemption u/s54F if the assessee purchase a LAND, ON WHICH RESIDENTIAL HOUSE PROPERTY IS CONSTRUCTED, AND NOT RESIDENTIAL HOUSE PROPERTY, 1 year before the actual sale of a capital asset on which LTCG arises.

suthaya

suthaya (Querist)
Follow

08 December 2011 MR.Lohit thanks for the reply. Still i am not very clear about it
Sec 54F states that a assessee has to, incase of purchase,a RESIDENTIAL HOUSE PROPERTY either 1 year before or 2 year after the date of transfer and incase of construction,within 3 years from the date of transfer

but my query is
can the assessee cliam exemption u/s54F if the assessee purchase a LAND, ON WHICH RESIDENTIAL HOUSE PROPERTY IS CONSTRUCTED, AND NOT RESIDENTIAL HOUSE PROPERTY, 1 year before the actual sale of a capital asset on which LTCG arises.