I read your reply to one of the queries whether capital gains can be set off against purchase of property. As you have explained, the exemption/setoff is permitted u/s. 54F. I have a similar query, but my question is:
Can the exemption u/s. 54F, be claimed only on purchase of an ownership flat? Will I be permitted to claim set off u/s. 54F against purchase of rental/tenanted property? There would be a proper agreement with payment of Stamp Duty and Registration fees, etc. Completely legal transaction with full payment by cheque.
Please let me know.
Ans: We assume that the query is regarding self-occupied and let out property. Your question is not clear, so I will answer from both possibilities.
If you are talking about investing in a leasehold ownership flat (eg. A 99 year or 125 year lease): one cannot claiming benefit u/s 54F.
If you are asking about buying a house that is tenanted: Yes, you can claim the benefit as there is no requirement of the property to be self-occupied. This is subject to you fulfilling various conditions u/s 54F.