Mrs. Kamal Murlidhar Mokashi Vs. ITO (ITAT Pune)
Capital Gain-Purchased 4 Adjacent Residential Flats- Can Claim Exemption U/S 54F (With Provisions of Section 54F)
In this article I will discuss some clarification (with the judgment of a recent case law) regarding the provisions of Section 54F i.e. Exemption from Capital Gain on purchase of Residential House.
But before discussing that let us first know what are the provisions of Section 54F and to whom it is applicable.
1. Eligible Assessee: Individual / HUF
2. Conditions:
- There must be a transfer of Long Term Capital Asset, not being a residential House.
- Transfer of plot of land is also eligible for exemption.
- The Assessee should
A) Purchase one Residential House situated in India within a period of 1 year before or 2 years after the date of transfer.
B) Construct one Residential House in India within 3 years from the date of transfer.
C) If such investment is not made before the date of filing of return of income, then such amount ha to be deposited in Capital Gain Account Scheme. Amount utilized by the assessee and the amount deposited in CAGS shall be deemed to be the cost of the asset.
