cap gains tax exemption

sir, my brother inherited in march 2011, a house property on a/c of death of his wife..

in sep 2011 , he sold his own residential land of 1800(60*30) sq feet splittig into 1200 , 600 sq feet by two sale deeds registered on the same day.

with the cap gains by the sale of the above land ,can he buy one flat each in chennai and bangalore ?

please reply.

if only one house property is possible , can time limit of 3 years be availed by getting a undivided land share registered by a builder who builds flats by entering into a joint venture with a land lord and assures completion and handing over possession within 3 years from the date of sale of the original asset.

asked Apr 12 '12 at 21:27 by Choodamani 111


As residential land is being sold, section 54F would be applicable for taking tax benefits.

As he already owns a residential house property at the time of sale of land, he can only buy one more residential house property u/s 54F in next three years.

He can save tax fully he invests total sale consideration of both lands into a single residential house property.

Three year's period can only be taken when plot land is first in his name and he himself get the construction done.

answered Apr 18 '12 at 17:15 by Pankaj Batra 5.2k320

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Asked: Apr 12 '12 at 21:27

Seen: 1,780 times

Last updated: Apr 18 '12 at 17:15