Capital gains investment

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  1. tjaay

    tjaay New Member

    I have money that i have received from sale of plot. instead of paying capital gains can this be used for renovation / extension of old house .
     
    C. L. Suri. likes this.
  2. ZED

    ZED Well-Known Member

    Exemption will not be available merely for renovation.
    Mrs. Meera Jacob vs ITO 313 ITR 411 (Kerala)

    Shri K. Rajendra, Vs. The Income Tax Officer (Banglore)
    https://indiankanoon.org/doc/105399754/?type=print


    Recently a judgement came, wherein it was held that if the expenditure has been incurred for the purpose of making a structure habitable then exemption should not be disallowed. It appears logical to me because it can be said to as construction, but I would rather wait before some I advise someone to do this.

    Extension may or may not amount to construction. If extension is in nature of ACTUAL construction (like adding a floor or a new unit) then exemption will be allowed and not otherwise.
     
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