Capital gains exemption - section 54

You hv to purchase a residentioal house within a period of one year before the transfer (or within 2 years after the date of transfer) or has constructed a residential house property within a period of 3 yrs  after the date of transfer.

1. Construction should be completed within 3 yrs from the date of transfer.

2.the requirement  of law is that the assessee should purchase a residential house within a specified  period and the source of funds is quite irrelevant..

3. it is not necessary that only one property is transfered

4. you can purchase more than 1 residential house. there is no limit on purchase of house property.

You hv to purchase a residentioal house within a period of one year before the transfer (or within 2 years after the date of transfer) or has constructed a residential house property within a period of 3 yrs  after the date of transfer.

1. Construction should be completed within 3 yrs from the date of transfer.

2.the requirement  of law is that the assessee should purchase a residential house within a specified  period and the source of funds is quite irrelevant..

3. it is not necessary that only one property is transfered

4. you can purchase more than 1 residential house. there is no limit on purchase of house property.

HI,

I think you should sell self ocupied house and invest in another residential house as per sec54.

you can also invest in RECL/NHAI bonds within 6 month after the date of transfer as per sec 54EC. Investment is limited to 50 lakh p.a.

agreee with above you can buy another property (SOP) for saving capital gain tax within stipulated time as per above

you can buy one house by selling two property

hi,

i have an query regarging exemption under section 54F of income tax act. 

my query is , if assessee has LTCG from sale of shares of in two consecutive financial years , whether he can invest the consolidated amount of capital gain in one property and claim exemption in both years?

Yes it can be done for purchasing or construction of residential house subject ot conditions of 54F. Shares sold should be long term.

if the proprty sale within one f.y you cannnot calim exemption for 2 years 

if two years then invest amt in Capital gain investment scheme before filling income tax return then only you can take benefit for 2 years

thnk u so much Mr. Praveen and Mr. Valji.  Clarification given by you is very helpful to me. can u plz give me some reference so that i can convience my client that whatever m saying is metioned in law.

Regards

Shivi Jain

i have one more query regarding exemption of capital gain as follow:-

1. Can two tax payers invest jointly in house property to claim exemption u/s 54F seperatly in there individual Income tax return?

Thanx in advance.

Regards 

Shivi

one can purache/construct  house property by selling another residential house property within three year of sell or purcahse befor one year .

there no restriction in selling of one or two property (but it should be reseidential)

Thanks for all your replies. To be more specific

1. Can I sell two residential properties in the same year and buy one big residential property from the Capital Gains of both the property. In that case can I get exemption for the Capital Gains araised out of both the properties.

2. Can I sell two residential properties and buy two more residential properties and claim Capital Gains for both of them.

Thanks,

Murugan

Originally posted by : valji
	agreee with above you can buy another property (SOP) for saving capital gain tax within stipulated time as per above you can buy one house by selling two property

I have the other question-

1. If Asseessee sells out one big residential property, can he/she reinvest the gains in two or more smaller residential properties to save long term capital gain under sec-54?

2. Is there any limit on reinvest in residential property pa like we have 50 lac pa for bonds?

Please advise.

Thanks in advance.

Regards,

Mohit