Exemption under Section 54 if already claimed earlier

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  1. Vipul24

    Vipul24 New Member

    1) I have availed capital gains exemption under section 54F of It act while buying a property in July 2012 (Sold a land and bought a residential property)

    2) In Oct 2014 i have sold another plot of land and seek capital gains exemption by buying an under construction residential property


    a) Do i have an restriction to buy another residential property for 3 years (up to July 2015)after claiming exemption as stated in point 1 above

    b) If there is a restriction, can i invest in under construction property completing only in June 2016 (beyond 3 years restriction if applicable) but investment starts now (within 3 years restriction period of it is there)

    c) Though possession and registration of under-construction property will be in June 2016 but builder is offering me huge discount if i pay 100% upfront now (before completion of 3 year restriction period), will that be an issue with tax authorities

    d) Is it mandatory to put the consideration from sale as under point 2 in Capital gains account immediately or can i directly invest in property as long as it is before filing of returns

    Please help
    Vipul Sharma
    Last edited: Mar 15, 2015
  2. Parul_Gupta

    Parul_Gupta Active Member

    The only condition for claiming exemption under section 54F is that you should own more than 1 residential property apart from the one you intent to purchase.

    Even if you have claimed the exemption earlier, you can still claim it again
    Anish Goel likes this.
  3. Parul_Gupta

    Parul_Gupta Active Member

    You can directly invest the amount in property before filing income tax return.

    In case you are not able to buy the property before filing income tax return, you would be required to deposit the same in the capital gains account
    Anish Goel likes this.
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