Capital Gain on unlisted shares and tax planning via 54F

Rahul Gupta (Manager) (153 Points)

10 January 2021  

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?