Long term capital again exemption

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rajat jain (Querist)
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13 December 2018 We have a client who has long term capital gain during the A.Y.2019-20 around 40 lacs While computing tax liability, I want to make it clear that can I avail the benefit purchase of residential flat.

Please help me out.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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14 December 2018 Yes, subject to the following -
* exemption of capital gain is available in case of transfer of long term capital assets against investment in residential house.- section 54F

*the exemption is available only to individual and HUF;

*capital gain has arisen on account of transfer of any long term capital assets other
than residential house;

* net consideration arisen on account of transfer of long term capital assets has
been invested as follows –

i) net consideration has been re-invested in purchase of one residential house
within a period of 1 year before the date of transfer or within a period of 2 years
after the date of transfer; or

ii) net consideration has been re-invested in construction of one residential house
in India within a period of 3 years from the date of transfer.

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