Please tell me How can i get exemption from Capital Gain on Commercial Land.
4 Replies
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 26 March 2010
You can make investment in bonds as specified in section 54EC upto Rs. 50 lakhs in each financial year.
So you can invest Rs. 50 lakhs in this financial year by March 31, 2010 and make further investment within 6 months from sale in F. Y. 2010 - 11
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 26 March 2010
Also if the sale is by an individual or HUF then the sale proceeds can also be invested in a residential house property.
Amir
(Learner)
(4016 Points)
Replied 26 March 2010
Dear Sir,
If its a Long Term Asset i:e U are selling it after holding for more then 36 months then it can be claimed exempt
1) u/s 54EC - Upto maximum of Rs. 50 LACS - by Investing in REC/NHAI Bonds
2) U/s 54F - By acquiring a Residential House but Subject to Conditions mentioned in that section.
C.Balaji
(Learner)
(1867 Points)
Replied 26 March 2010
Agree with Amir brother..............
The Commercial Land sold should be a Long Term Capital Asset (i.e. should be held for more than 36 months) to claim exemption u/s 54EC and 54F........STCA - No exemption......
The Investment in REC/NHAI bonds should be made within six months from the date of transfer....54EC
54F - Transfer of LTCA other than Res. House and pur/const of Res. house..........
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