CAPITAL GAIN
This query is : Resolved
04 March 2017
can a person who already holds a residential house,can his gain from selling of commerical property can be used for buying another residential plot
CA Gopal Somani
(Expert)
05 March 2017
As per Section 54F, person already holding ONE residential house, can claim exemption from gain on Sale of commercial property by
1. Constructing a new residential house within 3 years from the date of transfer, or
2. Should have purchased a residential house one year before, OR
3. Have to purchase a residential house two years after the date of transfer.
But the important point here is investment (Purchase/ Construction) should be in Residential HOUSE.
1. Constructing a new residential house within 3 years from the date of transfer, or
2. Should have purchased a residential house one year before, OR
3. Have to purchase a residential house two years after the date of transfer.
But the important point here is investment (Purchase/ Construction) should be in Residential HOUSE.
05 March 2017
but that money has to be kept in different amount and also the entire amount has to be used or just the capital gain amount has to be used
CA Gopal Somani
(Expert)
05 March 2017
Yes, Money has to be deposited in different Account.
If the new asset is not acquired up to the date of submission of return of income, then the tax payers will have to deposit money in “Capital Gain Deposit scheme” with a nationalized bank.
In order to get full exemption u/s 54 F he will have to invest the full sale consideration not just capital gain.
If the new asset is not acquired up to the date of submission of return of income, then the tax payers will have to deposit money in “Capital Gain Deposit scheme” with a nationalized bank.
In order to get full exemption u/s 54 F he will have to invest the full sale consideration not just capital gain.
05 March 2017
this amount can't be used to repay the outstanding loan which is due on the first residential property?
CA Gopal Somani
(Expert)
05 March 2017
If that residential house was purchased one year before the date of transfer by taking loan then such repayment should be taken as fulfilling the condition of using the sale proceeds.
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