Capital gain exemption - purchasing one big plot from sale consideration of 3 plots

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Capital gain exemption - purchasing one big plot from sale consideration of 3 plots
Query (Issue) Started By: - shyamal roychowdhury Dated:- 18-3-2010 Last Reply Date:- 15-4-2010 Income Tax
Got 5 Replies
Income Tax
My client has three small plots of land . In one plot a small one room is also exists. He is holding all the plots over 5 years . He wants to sell all the three plots at on .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e date & purchase one big plot/one big house using total sales consideration of three plots/house . can he not get capital gain exemption when the entire sales consideration of three plots/ are utilised for one big house / one big plot Thanks . If any one can address the problem . Reply By Rama Krishana: The Reply: If you read the section 54 and Section 54F of the Income Tax Act, you would find t .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... hat section 54 says capital gain from sale of a long term capital asset is eligible and under section 54F capital gain from the sale of any long term capital asset is eligible. Therefore, in my view, you can claim the benefit of exemption u/s 54 read with 54F together for purchase of a eligible house property. Reply By Jain Jain: The Reply: your client will get full exemption of capital gain on sa .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... le of the three plots. Reply By DEV KUMAR KOTHARI: The Reply: Sale proceeds of long-term plots can be invested in new residential house to get exemption, subject to meeting other conditions. investmetn in cerain bonds is also permissile (upto Rs.50 lkah in a year) so one can plan to sell old plots in two previous years.see. section 54, 54F, 54EC. The sale of old plots will be subject to S. 50C, t .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... herefore, some notional capital gains may also be taxable. You need to plan disinvestment as well as investment properly. Reply By RAJESH DHANDA: The Reply: yes it will be fully available for exemption u/s 54 & 54f Reply By RAJESH DHANDA: The Reply: fully availble u/s 54 and 54f
Discussion Forum - Knowledge Sharing .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X