Section 54F of Income Tax Act,1961

[Raju Mahendrakar]

Assessee transferred long term asset. The transferred assets are 2sites. He has purchased residential house within stipulated time as per sec 54F. Whether capital again arising on both sites are eligible for deduction U/S 54F. Explain with decided case law.

AI Summary

Capital gain exemption under Section 54F depends on whether gains from multiple transferred sites qualify via single asset characterization. Whether capital gains on two transferred sites qualify for deduction under Section 54F when a residential house is purchased within the stipulated period depends on whether the plots are treated as a single capital asset or distinct assets, how the gain is apportioned, and whether the reinvestment meets the amount and timing requirements prescribed by the provision.