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LTCG of multiple year

1101 views 1 replies

rahul rana

110 Points Posted on 23 July 2022

Can LTCG on the sale of land in multiple years be pooled together for the availing exemption under section 54F.

E.g. In 2021-22 i sold three industrial plots for net consideration of 10cr & deposited whole amount in CAGS account to avail exemption under section 54F.

In 2022-23 I sold one residential plot for net consideration of 1 cr.

can net consideration of all above land be pooled together in CAGS account for availing exemption under section 54F?

Replies (1)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211758 Points Posted on 23 July 2022

Yes...

Refer::: Details of Case Law
ACIT New Delhi v Mahinder Kumar Jain IT APPEAL NO. 5254 (DELHI) OF 2014.

..............................

Taxpayer sold his commercial property and invested the proceeds in the construction of a house at Mehendi Farm.He claimed a deduction of Rs 47.84 u/s 54F in 2008-09 against the investment made in construction of a farm house.
In 2010-11,Taxpayer again sold five properties and invested further in the construction of the same house at Mehendi Farm. He claimed a deduction of Rs 1.59 crore under section 54F in his I-T returns for 2010-11 against the investment made in the same house.....

The Income Tax Appellate Tribunal (ITAT) Delhi allowed the deduction of Rs 1.59 crore under section 54F against the investment made in the construction of house at Mehendi Farms.