long term capital gain invested in plot

Share
Share This Thread
  1. Jyoti110

    Jyoti110 New Member

    Dear Sir,

    I had purchased a residential plot in year 2004 @ Rs. 10 LAC which is sold in year 2012 @ Rs. 28 LAC.

    To save TAX on long term capital gain from above mentioned transaction I have invested Rs. 15 Lac in year 2012 in residential plot under section 54. On balance long term capital gain I had paid applicable tax too in year 2012 only.

    Pl.confirm as per section 54 it is mandatory for me to construct house on above mentioned purchased residential plot within 3 years from date of registry or can I keep/sale this plot without any construction after 3 years.

    Thanks & Regards,

    JYOTI
     
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    The reinvestment should be in a residential house only.

    As you have invested in a residential plot and not in a residential house - you will have to construct a house on this plot.

    It is not necessary that you construct a proper house. A small 1 room can also be considered as a house and you can claim exemption.
     
  3. Jyoti110

    Jyoti110 New Member

    Dear Sir,

    Thanks for an immediate reply. Some one told me that if i would have been taken exemption under 54F then it was possible. Pl. confirm

    Thanks & Regards,

    JYOTI
     
  4. Jyoti110

    Jyoti110 New Member

    Dear Sir,

    This is my question that whether the assessee can claim the exemption u/s 54 or 54f if assessee has invested his capital gain for purchase plot of land only, Because of assessee has invested full amount in purchase of plot and he has not further amount for construction of house then whether assess can claim the exemption u/s 54 or 54f or not.

    Thanks & Regards,

    JYOTI
     
  5. gaurav_kumar

    gaurav_kumar Well-Known Member

    Section 54F states that the asset sold can be a residential plot but the asset purchased should be a residential house.

    Therefore, the advice given to you is not correct.
     
  6. gaurav_kumar

    gaurav_kumar Well-Known Member

    The best solution in your case wld be to construct a small room on the residential plot and this small room would be treated as a residential house and therefore you wld be able to claim capital gains exemption for the same.
     
Draft saved Draft deleted
Loading...
Similar Threads Forum Date
Difference between Short term loan and Long term loan Misc. Nov 23, 2016
tax on long term property capital gain Misc. May 18, 2016
Can NRI's become Partners in LLP along with Resident Indians? Misc. Aug 14, 2015
Useful Courses which can be done along with IPCC Misc. Jul 22, 2015
SAP certification along with CA Misc. Apr 27, 2015