Exemption under section 54 for Capital Gain

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This discussion clarifies whether an individual can still benefit from indexation under the old capital gains tax regime and claim exemption under Section 54 when selling a residential property. The consensus is yes, provided the proposed finance bill amendments are approved. This means you can calculate your capital gains using indexation and then reinvest to claim the Section 54 exemption, even if selling in late 2024.

Piyush

Piyush (Querist)
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10 August 2024 If residential property sold and Capital gain tax Calculated as per old regime by taking Indexation

but if assessee wants to invest in new residential property, can he still get indexation benefit in old capital gain tax regime and claim exemption Under section 54,?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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10 August 2024 Yes.

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Piyush

Piyush (Querist)
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10 August 2024 Thank you Sir.

So, If Property will be sold in Sept 2024, We can still get Indexation benefit under old Capital gain tax Regime even if we want to get benefit of exemption under Sec 54 .

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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10 August 2024 Yes, provided the amendment proposed in the finance bill is cleared in Rajya sabha also.

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