26 January 2016
Hi. Kindly suggest whether sec.54F can be claimed in the following case.
A land-1 (3 cents) is in the name of Mr.A.Now Mr.A has decided to gift 2 cents of the above said land to other family members say Mr.B and Mr.C. Mr.A Mr.B and Mr.C decided to construct a residential house in the said land-1.
Query:Mr.A,Mr.B and Mr.C have already made a long term capital on sale of another land (Land-2).
Whether long term capital on sale of land-2 can be claimed as exemption on construction of residential house on Land-1.(for Mr.A,Mr.B and Mr.C). Refer,if any case laws in support of the above exption claim. Thanks in advance.
26 January 2016
On construction of a new house section 54F deduction will be available subject to conditions mentioned u/s 54F(1)(a) and first proviso.
Such gift attracts other income in the hands of Mr. B and Mr. C
CAclubindia
