Capital gain

This query is : Open

Devendra (Querist)
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08 September 2015 I am a resident Indian & I want to sold one property which is in the name of me & my two NRI Uncles. Purchaser told me that he deduct 20 % TDS on transaction because my Uncles are NRI. The property belongs to us for more than 1 year.

My Question is
1) If we reinvest the capital gain amount in other asset then it wiil be Exempted from tax or not?
2) Can this TDS Amount will be refunded to us?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 September 2015 1 It will be exempted from tax.
2 TDS amount will be refunded on filing of return seeking refund.

CA Vap Patel

CA Vap Patel (Expert)
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08 September 2015 There are many tax exemption section available in income tax. But to NRI only exemption under section 54 and under section 54EC is applicable. To resident all exemption is available. Once you take exemption under section 54 then your whole capital gain get exempted and you can take refund of all TDS deducted.

Kaushik Joshi

Kaushik Joshi (Expert)
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08 September 2015 Deven,
Firstly deduction is available on " long term capital asset".
In case of property, it is considered long term only if it has been in your hands for more than 3 years.
Else no deduction available for you.

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