Am I eligible for exception under section 54F

Am I eligible for exception under section 54F

I have sold my property in June 2017 and I am looking for a new property which will likely be finalized by June 2018. Am I liable to pay long term capital gain ? Is section 54F applicable which enable the seller to get exception if new property is purchased within 2 years from the date of sale of previous property.

Asked 7 years ago in Capital Gains Tax

Hi,

In order to answer your question properly, kindly let us know the following:

1. Date of purchase of property which got sold in June 2017

2. Nature of property (i.e. flat or land)

3. Number of house property owned by you as on the date of sale.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

Abhishek Dugar

CA, Mumbai

3576 Answers

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Talk to Abhishek Dugar

1. I purchased on March 2012.
2. Builder floor.
3. None.

Asked 7 years ago

Yes, you are eligible for exemption from capital gain tax but not under section 54F. You are eligible under section 54.

However, if for whatever reason, you are unable to buy residential flat in before July 2018, you will have to keep the money equivalent to capital gain amount in CGDS account before filing your return. Then you can buy the property till June 2019.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

Abhishek Dugar

CA, Mumbai

3576 Answers

183 Consultations

Talk to Abhishek Dugar

Hi,

Yes you will be eligible under sec 54. You can buy a residential property within 2 years or construct a residential property within 3 years of transfer of the old residential property. However, please deposit the capital gains in a capital gains deposit scheme before the last day of filing your return i.e.31st July 2018 in case you are not able to buy the new property till then.

You can then use this deposited fund to buy / construct the residential property.

Hope that clarifies.

Regards,

Nikhil.

Nikhil Khanna

CA, Mumbai

1429 Answers

19 Consultations

Talk to Nikhil Khanna

Yes, exemption will be available to you.

However, if the purchase of new property cannot be completed before due date of return filing, the amount needs to be deposited under capital gain deposit scheme.