Investing capital gains in residential house

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PRANAY JAIN (Querist)

02 August 2014 I already have one residential house in my name, now can I invest proceeds from property sold to buy another residential house to take capital gain exemption.Please reply as per changes in Capital gain law in Union budget 2014.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

02 August 2014 yes u will get the exemption under capital gain laws......

Nikhil Kaushik

Nikhil Kaushik (Expert)

05 August 2014 dear pranay, the change in union budget was for section 54F and not for section 54.

PRANAY JAIN

PRANAY JAIN (Querist)

05 August 2014 I am asking for section 54F, as the capital gain is from selling non residential property, so at the time of sale of above non residential property I already own a residential house,so can I get tax exemption on buying another residential house.I know that earlier it was allowed but some changes has been made in 2014 budget and don't know about its ramifications in my case.

Nikhil Kaushik

Nikhil Kaushik (Expert)

05 August 2014 it would still be allowed. The rule is that you cannot have more than one residential house on the date of transfer of original asset. Given that you have only one residential house, this condition is satisfied.

Coming to changes in finance Act 2014, it provided that proceeds from sale of the asset can be invested only in one residential property. this amendment was made because in many cases courts allowed deduction even where the assessee bought more than one house to claim deduction under section 54F.

PRANAY JAIN

PRANAY JAIN (Querist)

15 September 2014 Thank you very much all of u.

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