benefit of exemption U/s 54 & 54F

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Harsh Raiyani (Querist)
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07 September 2007 Can one claim benefit of exemption u/s 54 & 54F both at the same time.

Last yr, i had capital gain from sale of shares (NON LISTED) and sale of resi property (both LTCG). Can i claim the benefit of both the sections by investing all my capital gain/net sale consideration in one (single) new resi property.

No other benefit U/s 80 C has been claimed

sivasankar

sivasankar (Expert)
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07 September 2007 Dear Harsh,
The captial gain araising from sale of shares must be short term in your case because there no long term capital gains tax on sale of shares.
So in your case invest the LTCG from Resi in another resi to claim 54F.
But if your share sales is a off market transaction you can use 54F for your benefit

R.V.RAO

R.V.RAO (Expert)
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07 September 2007
Sec. 54F : If your holding period of shares is more than 12 months and if shares are sold through a recognised stock exchnage and if you paid security transaction tax, you are exempted from long term capital gains tax.
if below 12 months holding , it is short term capital gain.
you cannot club or treat both as same,as MR. Harish rightly said.
As far as sec.54 is concerned if you held the house for more than 3 years ,it is a long term capital gain.
BUT IF YOU HAVE AVAILED 80 C BENEFIT ,pl. note the minimum holding period is 5 years. Otherwise, I am afraid if the benefit of exemption already availed can be denied now retrospective.
The capital gains NEED to be deposited in a specified cap. gains account before March of the fin. year and to get exemption under sec 54 buy a house in two years or construct a house in 3 years.
Alternatively the entire sale proceeds can also be deposited in REC or NHAI bonds .
raovr2001@yahoo.com

Harsh Raiyani

Harsh Raiyani (Querist)
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08 September 2007 .