Description:
This section is applicable only to individual and HUF assessees in respect of capital gains arising from transfer of any long term capital asset other than residential house.
- Within a period of one year before or two years after the date of transfer of long term capital asset, the assessee ought to have purchased or within a period of three years after the date of transfer, must have constructed a residential house.
- If an assessee holds two or more transfer of long term capital asset. If an assessee holds two or more residential houses on the date of transfer then he is not eligible to claim exemption under this section.
- The assessee must not acquire any residential house other than the eligible residential house within a period of one year from the date of transfer original capital asset.
- He must not construct another residential house within a period of three years.
Source:
1. www.tpcc.in.
2. The Tax Reference .Volume120. Issue No.2, 11 July 2011 Page No.28.
Our Comment:
The assessee should purchased a residential house within a period of one year prior of sale or within two years of sale or constructed a residential house within three years and he should not have more than two residential houses to avail the exemptions u/s. 54F.
