Sir,
One of the case which has audit objection was raised for the Asst. year 2009-10
Following is the brief facts of the case, Assesee sold the land on 02..05.2008.Purchased the old land and building on 01.02.2007, ( 15 months before the date of transfer of land). Assessee demolished the said building and constructed the new one for the self occupation. Assesee also owns one more property from which rental income is being offered to tax.
Assesee claimed the exemption for the long term capital gains, on the sale of land, for the investment made in the construction of residential building u/s 54F. Is it correct? or Not ? pl clarify
Eligibility for Tax Exemption Under Section 54F: Construction Timeline Clarified for Capital Gains from Land Sale. An individual queried about claiming an exemption under Section 54F of the Income Tax Act for long-term capital gains from selling land in the 2009-10 assessment year. The individual had purchased land and a building 15 months prior to selling the land, demolished the building, and constructed a new one for personal use. The query sought clarification on the eligibility for exemption given the timeline of construction. A tax advisor responded that if the construction occurred after the sale date, the investment could be deductible under Section 54F, referencing a related Delhi High Court case for guidance. (AI Summary)
TaxTMI 
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TaxTMI 
