I would like to take your assistance on my following queries :
I have two properties in my name:
1. One Residential Plot (Which I bought on 2011) - Planning to sell in coming month
2. 1 Residential house (which I bought on 2015 feb - 25 lakhs in loan)
I have to sell my residential plot now which has been our property for more than three years so comes under Long Term Capital Gain.
As per my understanding, section 54F is applicable here as the property is a residential plot and not a house. But as section 54F is not applicable in case person owns more than one residential house property at the time of sale of plot, so I would like to check if section 54F is
applicable or not.
What should I need to do to get tax exemption of this LTCG ? I would like to know whether I can buy house or Plot with this capital gain to get tax expemtion?
Thanks in advance
Regards
Karthy
2 Answers
Hi,
The Assessee should not own on the date of transfer of the original asset more than 1 residential house (other than the new house). He should also not purchase within a period of 1 year after such date or construct within a period of 3 years after such date any residential house (other than the new house).
So, Section 54F is not applicable in your case.
You can invest in Section 54EC Bonds.
Read : http://www.relakhs.com/how-to-save-capital-gains-tax-on-sale-of-land-house-property/
How about buying a PLOT again with this LTCG? is that tax exempted?
and how about constructing extra floor on existing residential property , is that LTCG exempted?
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