Become a Certified GST Practitioner. Batch begins 18th Nov. Register Now!

Exemption u/s 54 f

vikas kumar surana (CA Final (New Course)) (51 Points)

22 March 2013

I have sold a piece of urban land in municipal area and purchased a urban land measuring of 3 acres for constructing residential house for own use (Construction area 10000 sq ft), will i be eligible to claim capital gains deduction U/s 54 F of Income tax Act, 1961.

Reply
Follow
Share

3 Replies

krishna bhatt (employee) (236 Points)
Replied 22 March 2013

section 54 F exemption is available if you invest Any Long term C.G. in a residential house property. if you are planning to build a new residential house property than the total cost incurred by you to owe that property will be available as exemption u/s 54 F. provided building/construction should be completed in 3 years of transfer of old property. FYI Total cost includes, 1. The cost of the land, plus 2. The amount it cost you to complete the house, including: 3. The cost of labor and materials, 4. Any amounts paid to a contractor, 5. Any architect's fees, 6. Building permit charges, 7. Utility meter and connection charges, and 8. Legal fees directly connected with building the house.