Capital gain 54 F

Tax queries 376 views 9 replies

Guest

I have two houses purchase in 2000 and in 2019 in my name. Sold plot in Oct 2021 to utilise capital gain to purchase new house bigger one. Entire consideration kept in capital gain Account with psu bank. 54 F.4 month to remain to utilise capital gain if purchase new house or 1.4 month to construct new house.

Now wish to sell one house to purchase new bigger one which is under completion to utilise capital gain of both.Looking advice on it to get more clarity

Replies (9)

rama krishnan

12244 Points Joined May 2017

First of all you are not eligible to claim deduction under section 54F as you own more than 1 residential property as on date of transfer of plot. so the entire capital gains realized on sale of plot is required to be taxed.

sabyasachi mukherjee

27886 Points Joined May 2017

Basic criteria
1. tenure after investing in new house property
2. two houses you cannot own as on that date.
3. capil gain account scheme is also an issue

Guest

Any solution on it. How to invest the capital gain amount or entire consideration

Guest

Any solution on it. How to invest the capital gain amount or entire consideration

sabyasachi mukherjee

27886 Points Joined May 2017

What is your capital gain?
If you can invest the entire amount of consideration in another property or construct another property or keep the entire amount in capital gain account scheme..

rama krishnan

12244 Points Joined May 2017

You can opt for 54EC deduction but that needs to be deposited within 6 months from the date of transfer. as of now, you don't have any choice except to pay tax

Amitava Bandyopadhyay

2 Points Joined December 2015

If an old inheritated property is sold ,how to calculate the capital gain ? Is there any investment option to avoid capital gain ?

rama krishnan

12244 Points Joined May 2017

If the inherited property is of land, you can avail 54F deduction by investing the entire net sale consideration in residential property. if the inherited property is of residential property, you can avail 54 deduction by investing capital gains in another residential property.
else you can avail 54EC deduction by investing up-to 50 LAKSHMI in NHAI OR RECL BONDS for a lock in period of 5 years