I have understood that to claim exemption of Long Term Capital Gains Tax on the sale of a vacant land, the following are the conditions:
1)We have to construct a new residential house within 3 years from the date of transfer, or
2)We should have purchased a residential house one year before, or
3)We have to purchase a residential house two years after the date of transfer.
The conditions for claiming the exemption are:
a)We should not own more than one residential house, other than new asset, on the date of transfer of original asset.
b)We should not purchase within a year or construct within three years any residential house, other than new asset after the date of transfer of the asset.
c)The income from such residential house is chargeable under the head "Income from House Property", other than the one owned at the time of transfer.
In one particular case, the assessee owned one residential house(given on rent) plus one commercial property(given on rent),that is total two properties, on the date of transfer of the original asset. Since the assessee owned only one residential house on the date of transfer of the original asset, can he claim exemption under section 54F by purchasing a new residential house within the stipulated period? (Can the ownership of the commercial property be ignored?)
