exemption u/s 54F
This query is : Resolved
14 July 2011
in case of 'A' who is having LTCG from two transaction and have LTCL from one transaction wants to avail the benefit of sec 54F. now,whether he can avail the benefit of sec54F in respect of both LTCG transaction or only one of them or benefit is restricted to NET LTCG after setting off LTCL.
14 July 2011
details required for discussion
14 July 2011
suppose 'A' earned 10 lac LTCG in one transaction,20 Lac in another transaction and loss of 25 lac in another transaction. now whether he can claim exemption u/s54F in respect of RS. 30lac gain earned in two transaction or exemption is restricted to only Rs.5 lac means net income under the haed capital gain
14 July 2011
First Compute taxable income under the head LTCG. Total LTCG is 30 Lacs.
*
Next Step is to claim exemption U/s 54F. I take from myside it to 2200000/ which is taken on proportionate basis on Sales Considerations of the 2 properties sold.
*
Taxable income from LTCG is 8.00 Lac, against that STCL loss will be set off.
*
Next Step is to claim exemption U/s 54F. I take from myside it to 2200000/ which is taken on proportionate basis on Sales Considerations of the 2 properties sold.
*
Taxable income from LTCG is 8.00 Lac, against that STCL loss will be set off.
14 July 2011
loss of Rs 5 lac is also a long term capital loss.
14 July 2011
1. Long term loss can be set off against long term gain.
2. Long term Capital Gain is calculated on
the basis of each capital asset.
Capital gain arising on Residential House
if computed then the taxable capital gains will be that part only which can not be set off for exemption U/s 54. If it is wholly set off Capital Gain will be Zero.
Let the same person has suffered a capital loss. Whether the loss can be set off or not, is governed by the provisions of set off and carried forward under a different chapter.
So in nut shell you can claim exemption first U/s 54, 54F etc and if there remains any balance CG that will be only available for setting off of the LTCL of a different capital asset.
You can not apply set off provisions prior
to computational provisions even with in the same head of income.
2. Long term Capital Gain is calculated on
the basis of each capital asset.
Capital gain arising on Residential House
if computed then the taxable capital gains will be that part only which can not be set off for exemption U/s 54. If it is wholly set off Capital Gain will be Zero.
Let the same person has suffered a capital loss. Whether the loss can be set off or not, is governed by the provisions of set off and carried forward under a different chapter.
So in nut shell you can claim exemption first U/s 54, 54F etc and if there remains any balance CG that will be only available for setting off of the LTCL of a different capital asset.
You can not apply set off provisions prior
to computational provisions even with in the same head of income.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Multiple payment of self assessment tax for A Y 2025-2026
- CAPITAL GAIN REDEVELOPED FLAT
- REGARDING ITR FILING QUESTION
- CLOSING STOCK QUERY
- Requirement under FEMA &RBI
- Correction in TDS return New Traces Portal
- Missed TDS
- Gst reverse charge mechanism to be claimed in the month of payment
- Rent claimed on building given on permissive possession basis
- DUE DATE FOR ITR FILING
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
