Section 54F - Capital Gain Query

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  1. hagarwal

    hagarwal New Member

    Dear Sir,

    I have sold one of my plot (eligible for long term capital gain) in FY 2013-14 and second in FY 2014-15.

    I have parked the consideration amount from sale of first plot in CGAS scheme.

    Can I avail exemption from capital gain for both the plot considerations by purchasing one residential property of cost equal to or more than sum of both plot considerations.

    Himanshu Agarwal
  2. rudrabose

    rudrabose Active Member

    Dear Himanshu

    Yes, Exemption under Section 54F is available if the Amount received from Sale of 2 Properties is reinvested in 1 Residential Property.
  3. hagarwal

    hagarwal New Member

    Dear Rudra,

    Thanks for the prompt reply. What if the residential property is purchased in between sale of two plots i.e.

    1. First Plot Sale (Consideration amount - X) - FY 2013-14

    2. Residential property purchased (Consideration amount - Y) - FY 2014-15 (Exemption claimed for X)

    3. Second Plot Sale (Consideration amount - Z) - FY 2015-16

    Note - Y =X+Z

    In this case can exemption from capital gain can be claimed for Y. I am considering that time duration between residential property purchased and second plot sale is less than 1 year.

    Himanshu Agarwal
  4. rudrabose

    rudrabose Active Member

    The Residential Property should be purchased either 1 year before or within 2 years from Sale.

    The example given by you fits in the above rule and therefore the Exemption under Section 54F would be allowed.
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