Rajesh ranka (CA) (80 Points)
20 June 2015
Rashi Bajaj
(CA)
(752 Points)
Replied 20 June 2015
Dear sir,
Inrespect of capital gains from sale of flat, you have an option invest u/s 54 or u/s54F, Sec 54 being the obvious better choice. However, in respect LTCG on of sale of plot, your option for investing in residential property is restricted to Sec. 54F.
Please not the difference between the two nature of investments:
| Sec 54 | Sec 54F | |
| Old Asset | Residential House | Any long term capital asset |
| New Asset | Residential House | Residential House |
| Amount of Investment | Capital gains | NET SALE CONSIDERATION |
| Amount of exemption | CG invested | Proportionate CG(w.r.t. Sale consideration) |
You must already know about the limitations of period, so I am not elaborating on that.
As regards your query, Rs. 7 Lacs + amount of Sale Consideration of PLOT need to be invested in the new residential house to claim exemption under both sections.
Hope this helps.
CAclubindia
