PrAsHaNt (working in ca firm ) (126 Points)
20 April 2018Dear all If one person sale his house in 21 lacs in 2018 which he purchased in 2001 in 465000. After indexation the gain is 835200. What amount to invest u/s,54. 21lacs or 835200?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(161198 Points)
Replied 20 April 2018
U/s. 54 capital gain amount is considered for exemption.......
So, if you invest Rs. 8.35 L or more in a house property in India, within specified time period, your LTCG tax liability reduces to zero.
CA Ankit Agarwal
(CA, CS)
(688 Points)
Replied 20 April 2018
Exemption under Section 54 is available when the capital gains from the sale of house property is reinvested into buying another house property. You need to invest the amount of capital gains and not the entire sale proceeds.
To claim exemption, you need to invest Rs.8,35,200 u/s 54.
CAclubindia
