Section 54 : Residential Plot Sale

This query is : Resolved

aaogay jab (Querist)
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30 January 2023 I reside in a jointly owned residential house A with my brothers, where I barely have a room to live. All of them have multiple rooms.

3 months back, i sold a jointly owned residential plot B (with my brothers).

Now, i want to buy a flat/ apartment C to reside.

Can I claim capital gain exemption under sec 54 with respect to B & C.

If yes, can i use sale proceeds from B elsewhere & use a home loan instead for C?

Thanks in advance

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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30 January 2023 1. Yes, you can buy apartment C & can claim exemption u/s. 54F of IT act. (with just having joint property A).
2. Yes, still you will be eligible to claim the exemption, subject to time period specified in the act.