Section 54F

[Varun Arora]

Dear Experts,

My Query is If i sold out my property and want to avail benefit section 54 F of Income tax Act 1961 But I Invested my sale consideration which was received on account of sale of previous held property in a Property which is in ownership of Assessee's Son with in the stipulated time as mentioned in the Section 54F.

Can I Still eligible to avail exemtion as stated in section 54 F of Income tax Act 1961.

Please enlighten .

Thanks in advance.

[Varun Arora]

one more thing Assessee has not deposit the amount in capital gain account scheme framed by central government but ultimate invested the whole amount in Construction of Restidential Property.

Can Assessee still eligible to avail exemption under section 54 F of Income tax Act, 1961.

[Ganeshan Kalyani]

Hope your query is resolved.

[Varun Arora]

No sir My query is not resolved yet, please help if you can.

[Ganeshan Kalyani]

Sir, the provision of section 54F of Income Tax Act stipulate that investment should be done by the assessee within the timeline in the purchase/construction of house or in the Capital Gain Account Scheme.

The provision does not mandate that the property in which the investment is made should be in the name of the assessee. Thus I feel that you should be eligible for exemption under said section.

However I would personal feel that if the amount involved is substantially high then please approach a practising CA or Consultant who would practically help you out in resolving the issue. You may find in this Forum itself. Thanks.

AI Summary

Capital gains exemption under section 54F may apply when sale proceeds are invested in residential property held in relative's name. Whether exemption under section 54F is available where sale proceeds were invested in construction of a residential property owned by the assessee's son and not deposited in the Capital Gain Account Scheme; the provision requires investment within prescribed timelines either by purchase/construction or deposit in the Capital Gain Account Scheme, and it does not expressly mandate that the property be in the assessee's name, although professional verification is advisable for substantial amounts.