Question And Answer
Subject: Whether amount invested in renovation of new capital asset with in specified period is eligible deduction u/s 54F of the Ac?
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Date: May 15, 2021
Query asked by K K SINGLA ADVOCATE

Dear SIR,

A person sells his plot and part of the sale proceeds are invested in the purchase of a partly built up house. Can he get exemption if remaining sale proceeds are invested in addition/renovation of the new capital asset within the stipulated period u/s 54F. Please advise.

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Answer given by

As per the provisions of Section 54F, the Assessee can get exemption for remaining sale proceeds which are invested in new capital assets, if the said investments are in the stipulated period as mentioned in section 54F. In Meher R. Surti v. ITO (2014) 61 SOT 5 (URO) / 27 ITR 340 (Mum.)(Trib.) expenditure on improvement / renovation for making it habitable it would be eligible as investment in new asset .

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