Budget updates move fast, keep up with CAclubindia Pro. Subscribe today!

Dection 50c

192 views 1 replies

ashok gupta

67 Points Joined October 2019

a person has purchased a land for residential purpose. thereafter he constructed flats and sell them.

the capital gain so arised has been claimed for exemption u/s 54 by purchasing another land.

kindly explain plz.

Replies (1)

Kapadia Pravin

17264 Points Joined December 2018

There is a different process of costing and accounting for builder / developer business activity.

There is no captial gain income but it will be a business income. And hence no deduction under section 54.

50C also coming under Capital gain provisions .