New Delhi, July 3 -- Can the capital gains from the plot of a land sale be re-invested to purchase a plot of land or commercial property for tax exemption?

Exemption from capital gains on the sale of any asset can be claimed only if the asset sold is a long-term capital asset. The period prescribed for this purpose is different for different assets. Land and buildings become long-term assets if held for more than twenty-four months.

Long-term capital gains arising on the sale of land can be saved by an Individual or a HUF under Section 54F by investing the net sale proceeds in buying a residential house within the prescribed time limit, subject to the condition that the taxpayer does not own more than one residential house on the date o...