Capital Gains on the Sale of Residential plot of land

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  1. Udayashankar

    Udayashankar New Member

    Dear Sir,
    Could you please help to provide answers to the questions below based on the facts hereunder:
    (a) My brother was a Indian Citizen during the purchase of a residential plot of land in 2004.
    (b) In the year 2012 he acquired US Citizenship and obtained a OCI (Overseas Citizen of India) in2013.
    (c) He sold the residential plot of land in Aug 2016.

    Questions:
    (1) Does this sale of vacant land be classified under Section 54F or 54 of Income Tax Act ?
    (2) Does he need to invest only the Capital Gains (after applying indexation benefit) or the entire sale proceeds to get Capital Gains Exemption ?
    (3) If the total Capital gains is greater than 50 lakhs, would he be able to invest
    Rs. 50 lakhs in REC bonds and the amount above 50 lakhs in a residential flat within 6 months from the date of sale and still get Capital Gains exemption.

    Thanks & Regards
     
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