Please Help: Capital Gain Exemption

Posted Date : 03-Mar-2012 , 03:31:05 pm | Posted By Kuldeep Loura

I have sale a plot in nov. 2010 for rs. 30 Lakhs and I have purchased new house in feb. 2011 for Rs. 20 Lakhs. What amount is eligible for exemption and I want to full amount of capital gain as exemption and what i should do ?

Category : Income Tax | Answers : 1 | Comments : 3 | Hits : 253

Answers

Answer By: lavina bajaj

hello

section 54f of the income tax act 1961 says that if a long term capital asset other than residential house is transferred by any individual or HUF and the assessee has purchased a residential house within one yr before or 2 yrs after the date of sale and the assessee doesnot own more than one residential house on the date of transfer of original asset, and the assessee shall not purchase any other residential house within such period after the sale of long term capital asset than the capital gain arising on such sale shall be exempt in the hands of assessee.

if whole ofsale proceeds are not utilised for puirchase of new asset than exemption amount shall be calculated as follows:

long term capital gain * amount invested in new house/ net sale proceeds.

Comments

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lavina bajaj

03-Mar-2012 , 05:22:08 pm

i hope the above would resolve your purpose.

Deepa Jain

03-Mar-2012 , 05:25:42 pm

Hello Kuldeep, Since You have sale Plot which is count under Land, so, u can not take exemption under section 54 of the Income Tax Act, 1961. But you can take exemption u/s 54F. As per section 54F, if An Individual or HUF sale a long term Capital Asset and acquired or constructed a residential House Property with in the prescribed time period, he can take exemption from capital gain u/s 54F on proportionate of net consideration received. so you can take only proportionate exemption. in addition to this u can not take the benefit of deposit scheme under this section because this benefit is available up to last date of filing of return.