INVESTMENT U/S 54
This query is : Resolved
NIRMAL DAVE
(Querist)
11 July 2025
Dear All,
I have purchase home on 20-02-2001 for Rs. 2,51,000/-
I have sold the same on 25-03-2025 for Rs. 23,00,000/-
I have again purchase new home on 25-06-2025 for Rs. 15,00,000/-
Index cost of old home is Rs. (251000*363/100) = 9,11,130
Capital Gain = 23,00,000-9,11,130 = 13,88,870/-
What is my tax liability on long term capital gain for FY 24-25?
Is it NIL or i have to invest full amount of sale consideration i.e. Rs. 23,00,000 to claim exemption under section 54?
The above confusion is due to change in rule related to long term capital gain from 23.07.2024 budget.
Thanking You
Nirmal Dave
I have purchase home on 20-02-2001 for Rs. 2,51,000/-
I have sold the same on 25-03-2025 for Rs. 23,00,000/-
I have again purchase new home on 25-06-2025 for Rs. 15,00,000/-
Index cost of old home is Rs. (251000*363/100) = 9,11,130
Capital Gain = 23,00,000-9,11,130 = 13,88,870/-
What is my tax liability on long term capital gain for FY 24-25?
Is it NIL or i have to invest full amount of sale consideration i.e. Rs. 23,00,000 to claim exemption under section 54?
The above confusion is due to change in rule related to long term capital gain from 23.07.2024 budget.
Thanking You
Nirmal Dave
CA R SEETHARAMAN
(Expert)
11 July 2025
It's NIL tax payable in such a case.
No need for any investment.
No need for any investment.
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