Exemption under Section 54
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12 October 2020
Assessee sold a residential Flat-A on 09-10-2020. He had already purchased Flat-B on 11-12-2018. Can cost of Flat-B be deducted from the sale value of Flat-A for the purpose of exemption under Section 54 of Income Tax Act? Kindly help.
Sagar Patel
(Expert)
13 October 2020
Yes, If Flat-A is long term Capital Assets than you can take benifit of Section 54 of the income tax Act, 1961[As Purchase before 1 year]...Cost of Flat-B will be deducted from long term capital Gain on sale of Flat-B
13 October 2020
Clearly NO, because Flat B is purchased MORE THAN ONE YEAR from the date of sale of Flat A.
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Sagar Patel
(Expert)
13 October 2020
Agree, Can't take benefit, as Gap is more than 1 Year.
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17 October 2020
What is the best alternative available to reduce capital gains tax?
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