Capital Gains Tax Exemption?

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  1. Nishant H

    Nishant H New Member

    Hello,

    In October 2013, my mother sold an empty residential plot "A" she owned for over two decades, and deposited the proceeds of 24 lakhs into a Capital Gains Account Scheme. In July 2014, she used 20 lakhs to purchase a new residential plot "B", which is empty till date, and no construction is expected due to lack of funds. The remaining 4 lakhs is still in the Capital Gains Account Scheme.

    Question: Under Section 54F, can we consider 20 lakhs invested to buy plot "B" as partial investment made, and thus claim exemption as per the formula given here http://www.charteredclub.com/section-54/ (See formula under section 54F)?

    Or does this exemption apply only on the amount remaining after constructing a house?

    Appreciate any help from this forum.

    Thank you!
     
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