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An urgent query u/s 54f

kesha (...) (218 Points)

08 February 2013

i had a query that if a person Avails Exemption u/s 54F for LTCG in a particular year then can he avail Exemption u/s 54 with in 2 years ..

is it possilbe ??

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7 Replies

IMAM (ARTICLE ASST.) (371 Points)
Replied 08 February 2013

no you can not avail exemption within two years

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Saurabh Maheshwari (B.com,ACA) (5923 Points)
Replied 08 February 2013

My cross question is how you can claim exemption u/s 54 and u/s 54 F against sale of same capital asset. .

Because exemp u/s 54- Long Term Capital Gain arising on sale of RHP,......but sec 54F specifically says that gain arsing on sale of long term asset but such long term asset should not be a Residential House.

So pls explain your case in detail .

kesha (...) (218 Points)
Replied 08 February 2013

Thanks for the repl. here is the Detailed Explanation of my Query

For example I Sell Jewelry Worth of Rs. 10 Crs and Invest the net Consideration in Residential House Property (New Property)

Again within 2yrs I sold my existing (old one) Residential Property (Not which I Purchased Above u/d 54 F) and invested in another Residential Property (u/s 54)

Can I do the Above

Saurabh Maheshwari (B.com,ACA) (5923 Points)
Replied 08 February 2013

Dear friend if you are investing in Res,. HP u/s 54F then you will get exemption for the same.

But remember that lock in period of that invst u/s 54F is 3Yrs.So, if you ar now selling that RHP(as invest u/s 54F) you can claim exemption u/s 54...their is no provision denying the same. But here your cost of that invst u/s 54F will be reduced because you have sold that invstd RHP u/s 54F before 3 yrs.

In short, for claiming exemption u/s 54 , you will loss the benefit of earlier cliamed exemp u/s 54F.