Benefit under sec 54 or 54 f

Hi

Since construction was done and a residential house property was sold, section 54 shall apply.

Since your residential house was constructed before 1 year there it can be treated as capital gain but you were holding the land since 2011 so that would be treated as long term asset. Now if you can show value of both asset separately in your sale deed then you can claim exemption u/s 54F for land and pay short term capital gain on house.

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Thank you

- You need to divide the sale consideration between land and superstructure. Land will be treated as long term capital  andasset superstructure will be treated as short term capital asset. 

- Exemption would be available only in case of sale of land u/s 54F and not u/s 54.

- Short term capital gain would be chargeable to tax at slab rate 

Hello,

Since you have sold a house and not only plot, you will get exemption u/s. 54.

I hope this answer satisfies your requirement.

Regards,

CA Hunny Badlani

Hi,

You will get the exemption u/s 54 as you have sold the house property.

Hello Sir,

You will get the benefit of section 54.

Section 54F is applicable for transfer of a long term capital asset other than a residential house

Section 54 is applicable for transfer of a residential house. 

Hence, in your case, section 54 is applicable.

Hi

It will be STCG as date of completion of construction is relevant for capital gain purpose.

So benefit under both the section is not available.

Hope it helps

Hello!

Since the residential house is a short term capital asset and the plot is a long term capital asset. Sec54 gives exemption on sale of only residential house. Sec 54F gives exemption on sale of any long term capital asset. In your case the land where the house is situated is a long term capital asset whereas house is short term. So the value of new residential house can be deducted on the indexed cost of land to claim the benefit of sec 54F.

You will get benefit u/s 54 as 54F is available for capital assets other than house property