02 October 2014
Hello Sir, I have a query and i need your help.Kindly see the details below.
1. I sold a house which was purchased in the year 2007. House was given on rent when i sold it. Purchase price was 25 Lac and Selling price was 38 Lacs
2. I also sold another house where i was living. It was purchased in August 2011 and sold in September 2014. Purchase price was 35 Lacs and selling price was 70 Lacs. Will i get the benefit of section 54 for both the sales.
3. Now i am planning to reinvent the money which i have got from these two transactions.
Please advice how much is the capital gain on the transaction and can i invest all in the new house whose cost is more than the gains i have made.
05 October 2014
you are eligible for section 54. however, ensure that the investment is made within 1 year if you are buying a constructed house or within 3 years if you are constructing a house.
yes, you can invest in the house whose cost is more than the gains you made.
CAclubindia
