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

Capital gain exemption under section 54F applies when sale proceeds are reinvested in a residential house meeting timing and cost tests.
Exemption under section 54F applies where an individual or Hindu Undivided Family with long term capital gain from a non residential capital asset purchases a residential house in India within one year before or two years after the transfer, or constructs one within three years after. If the new asset's cost is at least the net consideration, the whole capital gain is exempt; if less, exemption is proportionate to the ratio of the new asset's cost to the net consideration.