1. Yes, you can do so. Ensure that construction gets completed within 3 years from the date of sale.
2.Yes, you can. Anyway you don't need to invest the entire sale proceeds. You just need to invest capital gain amount.
Sale of house property
I have sold a residential house in financial yr 2019-20. Q.No.1 - Can I purchase an agriculture land and get it converted into residential land under sec 143 to construct a house for exemption under Sec 54. Q.No. 2 - As I have used some of the money I received on the sale of the house. can I take housing loan for exemption under Sec 54.
Asked 4 years ago in Capital Gains Tax
Dear Sir,
Hope you are doing well !!
1. Yes, you can do it.
However, the construction must be completed within 3 years of transfer.
2. Yes, you can.
You just need to reinvest capital gain amount to get full exemption.
- Yes it is possible.
- You need to reinvest only long term capital gain. If the amount invested at point no.1 is short of investment then you can cover the remaining from housing loan.
1. Yes you can but I didn't get the context of sec 143 but you need to construct it within 3 years.
2. Yes you can but you need to invest the capital gain amount atleast in the construction of new house and for rest you may use loan.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
Hello,
1. Yes, you can do so. Construction needs to be completed with 3 years from the date of sale.
2. Yes. you need to invest the capital gain amount for exemption under sec. 54.
I hope that this answer satisfies your requirements.
Regards,
CA Hunny Badlani
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