Can Capital Gain amount used to buy a vacant land?

I am a NRI, A family property (vacant land) was sold and I have got my share. Can I invest the amount in vacant land (plot) to avail tax exemption? 

Do I have to build a house within 3 years in that plot? Can I not keep this plot as investment or use it to build a house after 5 years?
Asked 2 years ago in Capital Gains Tax from Tirunelveli, Tamil Nadu
Exemption u/s 54F is available only if you are constructing a residential house. If you dont construct residential house within 3 years of transfer then whole amount of capital gains would be brought to tax at the end of 3rd year.
Vijay N. Kale
CA, Hyderabad
248 Answers
4.9 on 5.0
  Talk to Vijay N. Kale
As per our view you cannot invest in vacant plot to save capital gains Tax. You need to purchase the plot and then use the capital gains amount for investment in construction of house.
Shyam Sunder Modani
CA, Hyderabad
1373 Answers
5.0 on 5.0
  Talk to Shyam Sunder Modani
You cannot get exemption if the house is not constructed within 3 years.
B Vijaya Kumar
CA, Hyderabad
633 Answers
5.0 on 5.0
  Talk to B Vijaya Kumar

Ask a Question

Get tax advice from top-rated chartered accountants. It's quick, easy, and anonymous!
Ask a question

Other questions asked by this user

Other Questions

Chartered Accountants

Lakshita Bhandari
CA, Mumbai
386 Answers
5.0 on 5.0
Abhishek Dugar
CA, Mumbai
1890 Answers
5.0 on 5.0
Rohit R Sharma
CA, Mumbai
1680 Answers
5.0 on 5.0
Keerthiga Padmanabhan
CA, Greater Mumbai
534 Answers
5.0 on 5.0
Lalit Bansal
CA, New Delhi
323 Answers
5.0 on 5.0
Vidya Jain
CA, Kolkata
350 Answers
4.0 on 5.0
Pradeep Bhat
CA, Bengaluru
361 Answers
5.0 on 5.0
Vishrut Rajesh Shah
CA, Ahmedabad
598 Answers
5.0 on 5.0
B Vijaya Kumar
CA, Hyderabad
633 Answers
5.0 on 5.0
Vishakha Agarwal
CA, Bangalore
404 Answers
5.0 on 5.0