Thanks in advance

My Query is whether Exemption Under Sec 54 can be claimed under following circumstances

1 The Property was constructed before Date of Transfer 

2  The Construction was done on a Plot which was Purchased much Before Date of Sale 

    That is three years before Date of sale . Whether Investment in Plot and Construction done 

    before  date of transfer  would qualify for Deduction Under Section 54 

Exemption u/s 54 is available only on Long term capital gains.

If the building constructed qualifies as a long term capital asset then only exemption can be claimed by making the requisite investment.

In the present case as I understand the building construction is new and 3 years have not elapsed since its construction. Thus exemption u/s 54 is not available on the sale of building.

However since the land or plot is more than 3 years old any long term gain arising on the same shall qualify for exemption. 

Capital gains shall have to be computed separately on building and land respectively.