Capital gain on compulsory acquisition of house property

Pawan Mittal (CA Final) (711 Points)

17 September 2013  

Dear Experts

One of our client had a house property which was compulsorily acquired by the govt. Now there is a long term capital gain of Rs. 10 lacs.

Can we invest the long term capital gain in another house property and claim exemption u/s 54 of Rs. 10 lacs?

Can we invest the long term capital gain in any other asset to avail exemption under any other section?

What will be the tax treatment?