Hi,
I recently sold a plot which is purchased 5 years back for 9 lakh and sold for 13 lakh I have invested again for purchasing a plot for Rs.30 lakhs.
I am going to construct a house on the land I am buying for 30 lakhs for construction purpose to raise funds I am going to sell a flat which I bought in 2008 for rs 25 lakhs now I will get 43 lakhs out of this I will clear the housing loan 12 lakhs.
Can I get capital gain exemption for 1) land I sold for 13 lak and 2) flat I am going to sell for 43 lakhs. ( SUMMARY out of the both the sale proceeds I am buying new land and going to construct I will be closing old housing loan and will be taking new housing loan)
Please clarify.
Thanks,
R.BASKAR
1 Answers
Dear Baskar,
Section 54 : You can can sell Flat & can invest CAPITAL GAINS in a new house or build a new residential house. So, this section is applicable in 'Selling of Flat case. Do note that ‘cost of land’ can be included in the construction cost.
Section 54F : In this case you can use the entire sale proceeds of sale of old Plot for the construction of new house. The proceeds should note be invested in another vacant plot.
Read: How to save Capital Gains Tax on sale of Land, House Property or Flat?
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