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Urgent long term capital gain query

CA Final 592 views 8 replies

I have sold a 1000 sq. yards land and have a long term  capital gains on that. Now my query is that

1. If I purchase another 1000sq. yards "LAND" only, will I get exemption from Income Tax on such Capital Gains u/s 54F?

 

2. or should I purchase a "HOUSE" only to get such an exemption ?

Replies (8)

AS PER SEC54F A RESIDENTIAL HOUSE CAN BE PURCHASED OR CONSTURCTED SO  YOU HAVE TO PURCHASE ONLY HOUSE FOR CLAIMING DEDUCTION

But can i purchase a 1000sq. feet land on which only two rooms in the area of 50sq. feet are constructed?

and the registery of that land will br done as a "HOUSE".

in such a case is there exemption available? because it will be considered as a inseparable land & building cost?

what is the meaning of Constructed here?

can i use such a sale consideration in construction of my old house? is there any exemption available in such a case?

If the land Is Registered as HOUSE than exemption can be available & construction means construction of new house only within three yers

 

so in this case i will be getting the exemption on the full value of sale consideration.

yes

 

thanks for replies............

its ok

 


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