54F - Sale involves multiple transactions and is across financial years

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  1. Mohan Sharma

    Mohan Sharma New Member

    First, thank you so much for helping people with their questions. I really appreciate your time. I have a question on section 54F.

    My mom has a plot which she bought in 2005. Now, she plans to sell this plot and construct a second residence (she already has one) with proceeds from this sale. I assume that she can claim tax exemption under 54F.

    This is a big plot and can only be sold by subdividing into multiple smaller plots. It is likely that selling process will go over multiple financial years (2016-17 and 2017-2018). Is the entire sale proceed still eligible for exemption under 54F although it involves multiple transactions (one for each of the sub-plots sale) and is spread over multiple financial years?
  2. Vishalvj

    Vishalvj Member

    Only if multiple sale proceeds are invested in one single house property ( purchase in 2 years or construct in 3 years).
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