Section 54f

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Soumendra Padhi (Querist)
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17 April 2012 What will be my capital gain tax exemption, if do have the net sale consideration from a capital asset of Rs.40,00,000/, but I have taken a new house spending Rs.35,00,000/?

I am sure the total of my capital gain(Rs.5,00,000/) received from the sale will not be exempted.

Whether I will be able to claim deduction under section 54F or not ?

CA. Sameer Kashikar

CA. Sameer Kashikar (Expert)
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18 April 2012 Dear Soumendra,

Since your net consideration for purchasing anew house is less than net consideration received

Praportionate capital gains will qualify for deduction U/s 54F

i.e. 3500000/4000000*500000=437500 will be available dor deduction balance taxable

Ravi Jhamb

Ravi Jhamb (Expert)
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18 April 2012 Caculation of Capital Gain

Net Consideration:- XXXXX
Less:- Exp. for Transfer XXXXX

Less:- Indexing Cost XXXX

Capital Gain XXXX

You did not do index and wrote full information.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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20 April 2012 54F says gross consideration to be invested and not the capital gain. As you have not invested the entire gross receipt on sale of the property then the experts are correct and accordingly you will be liable for capital gains.

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