Capital gains

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Divyesh Majiwala (Querist)
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08 February 2016 An assessee have 2 residential house property & he sold 1 long term capital asset. He wants to buy a new residential HP. How to deal with this situation? Which section will applicable? Is whole capital gain chargeable or an assesse will receive any exemption? & If yes, under which section? Please give proper guidance.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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08 February 2016 You have not specified which capital asset has been sold, if house is sold and new house property is to be bought than section 54 would apply for capital gains exemption and if any capital asset other than the house property is sold and new HP is brought than section 54F will apply. But in case of 54F whole sale consideration is to be invested and assessee should not own more than one residential HP on the date of transfer other than the new one.

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Amol S Joglekar

Amol S Joglekar (Expert)
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08 February 2016 section 54 is the applicable section in this case in order to avail the exemption under that section.

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Divyesh Majiwala

Divyesh Majiwala (Querist)
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08 February 2016 An assesse has sold long term property other than HP, & if sec. 54F is applicable, then how to calculate capital gain? Because the one of the condition of 54F is that an Assesse should not own more than 1 Residential HP as you stated in your answer. But in my case assessee have 2 resi. HP. What to do now?

Divyesh Majiwala

Divyesh Majiwala (Querist)
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08 February 2016 Give proper guidance. Please.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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08 February 2016 The assessee can get exemption U/s 54EC of capital gains by investing the capital gains in Capital Gains Bonds maximum upto Rs.50.00lac.

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