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Capital Gain on unlisted shares and tax planning via 54F

Tax planning 389 views 1 replies

Assesse have got LTCG of 1cr from unlisted shares.

I understand 54EC is available now only from sale of Land / buidling or both. So 54EC is ruled out..

Now he can save tax only via 54F. Invest total net receipts in purchase of new home (within 2 years) or construction within 3 years.

Query?

1) For construction, can he construct home by demolising exisiting one floor home owned by his father ? 

2a) is it ok if his father gift him home and he construct home with full proceeds?

2b) or he should get conveyance deed transfered in his name and then do construction?

3) Home will be constructing will have 4 floors . He plan to sell after 3 years from construction completion date. is it ok?

4) Will 4 floors be considered one home or 4 different units?

Replies (1)
First transfer of existing home in your name. Each floor will be seperate unit. Hope per floor , it's one flat unit only.
The benefit under 54F will be for upto 2 units only. (provided he doesn't have any more residential units.


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