13 August 2009
will there be an exemption U/s 54F on purchase of a vacant land (in a residential area)? if not, should we construct a building (say 1 room on a site of 50'x 80')and for the purposes of exemption will they consider the cost of the land or only the building cost or both? please help
13 August 2009
1st part of query:- Cost of land is an integral part of the cost of the residential house whether purchased or constrcted. Ref:- CBDT Circular 667 dated 18/10/1993.
2nd part of the query:- If u do so exemption will be denied since it will defeat the intention of the exemption.
CAclubindia
