Section 54 of income tax act, 1961

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CA Jitender Yadav

CA Jitender Yadav (Querist)
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09 February 2013 capital gain section 54

Soumitra Basu

Soumitra Basu (Expert)
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10 February 2013 EXEMPTION IS NOT AVAILABLE

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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11 February 2013 pls clarify the building which is sold is flat or a complete building structure ?? and if the same consist flats is any flat is in your possession. ??

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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18 August 2023 Under Section 54 of the Income Tax Act, any individual or HUF who is selling a residential property can avail of tax exemptions from the capital gains in case the capital gains are invested in the purchasing or construction of a residential property.

The conditions that require to be fulfilled for availing the benefits of this particular section are jotted as follows:

The asset must be classified as a long-term capital asset.
If the asset sold is a residential house, the income from such a house should be chargeable as per the income generated from House Property.
The property seller should have necessarily purchased a residential house either two years after the date of transfer/sale or one year before the date of transfer/sale.
The residential house should necessarily be within India. The seller cannot purchase any residential house out of India and the claim for this exemption.

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