Exemption u/s 54 F

[SANDEEP TANWAR]

Dear Friends

Assessee has LTCG on Residential Plot now if he invests in Residential house property i.e purchasing a plot and then constructing on it.and also buys a shop (commercial property) whether the exemption under 54 F is available to assessee on investing in above said Residential house property

Your opinion will be of great help

Thanks & Regards

Sandeep Tanwar

AI Summary

Clarification on Tax Exemption: Section 54F Allows Exemption for Residential Investment, Commercial Purchases Don't Affect Eligibility. An individual inquired about the applicability of tax exemption under Section 54F of the Income Tax Act for investing long-term capital gains from a residential plot into a new residential house property, while also purchasing a commercial property. A respondent clarified that under Section 54F, exemption is available if the capital gains are invested in a new residential house within specified timeframes. The exemption is contingent on the cost of the new residential asset meeting or exceeding the net consideration from the original asset. The purchase of a commercial property does not affect the exemption eligibility for the residential investment.