Capital Gains Tax Exemption?

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  1. Nishant H

    Nishant H New Member


    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 (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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