capital gains tax

rammohan (Querist) 23 June 2011 This query is : Resolved
sir please clarify:

1. to avoid capital gains under sec.54F of IT act, can a person (X) construct a house by entering a joint venture agreement with another land owner(Y), when 'X' does not have a land in his name ?

2. if not allowed, whether 'X' can enter into a leese deed say for about 20/30 years with 'Y' and construct the house to take exemption from capital gains tax under Sec.54F of IT act?

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abhishek (Expert) 23 June 2011
the demand of section 54f is reinvestment of capital gain by the person who had gained it and by investing in construction of a residential house and the ownership of land also in the name of assesses.

prabhakar singh (Expert) 23 June 2011
1.no.
2.no.

soumitra basu (Expert) 28 June 2011
If it is joint construction agreement for residential purpose but not for the purpose of business then the benefit is available. Otherwise not.

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