Claiming exemption u/s 54f of income tax for the ay2018-19

This query is : Resolved

CSGupta (Querist)
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30 July 2018 Dear Sir/ Madam,
One of my clients sold 22 carats gold ornaments for Rs. 30,00,000/- in the month of March 2018 and another sale had been made for Rs. 20,00,000/- in the month of April 2018. Later he purchased a residential flat for Rs. 55,00,000/- in the month of July 2018. He have no any other residential flat / house except this. Kindly advise me for claiming exemption u/s 54 F and if possible send the related case law also. Thanking you

Guest

Guest (Expert)

31 July 2018 Here, two AY has been covered, 2018-9 & 2019-20.
In both years, you need to claim exemption u/s 54F. Ensure that there is LTCG on sale of gold.

CSGupta

CSGupta (Querist)
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31 July 2018 Any case law for the above querry

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Guest

Guest (Expert)

31 July 2018 No, I don't have any.

CSGupta

CSGupta (Querist)
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31 July 2018 https://www.financialexpress.com/money/good-news-now-you-can-invest-capital-gains-multiple-times-for-new-residential-property/814020/

can this case law be used

Guest

Guest (Expert)

31 July 2018 I don't think that you need case law for interpretation. The section is clear about the appropriation of the sale proceeds. IMO you can use multiple sales proceeds for one purchase.

CA Vijay Kumar Gupta

CA Vijay Kumar Gupta (Expert)
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31 July 2018 No need to have any case law. you are fully entitled to claim deduction u/s 54F for both the years.