Hi,
Can anyone comment on the LTCG taxation on sale of house property in following case?
Year 1 ltcg 50 lakh on sale of house property. Bonds purchased under section 54EC 40 lakhs. Amount deposited in CGAS 20 lakhs. How much will be the ltcg liable to tax - a. 0 lakh, b. 10 lakhs, c. 30 lakhs.
Year 4 no property purchased hence nil withdrawl from Cgas. How much will be the ltcg liable to tax - a. 0 lakh, b. 10 lakh, c. 20 lakh, d. 50 lakh.
Please also give the reasons why?
thanks for the reply.
One more question on 2nd answer.
Does it imply that in case LTCG in yr 4 is 20 lakhs, then deduction provided u/s 54EC is effectively 30 lakhs instead of 40 lakhs deposited?
That is the net effect but it will not alter tax liability.
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