Dear sir,
My Aunty has sold some old jewels for Rs.7 to 8 lacs during Dec.,14 and used this fund for constructing newly her old house.
Is she liable to pay any tax on sales?
thanks
Nagarajan
CMA Poornima Madhava
(CMA)
(13097 Points)
Replied 20 August 2015
Exemption from capital gain can be claimed u/s 54F if certain conditions are satisfied.
Rashi Bajaj
(CA)
(752 Points)
Replied 20 August 2015
Exemption u/s 54 will be available if new residential House is purchased within the time limit, or
New property is constructed within the time imit.
I am not sure about substantial renovation of old house being covered under this section. Can you confirm Poornima?
CMA Poornima Madhava
(CMA)
(13097 Points)
Replied 20 August 2015
But if u observe the query, it is mentioned as 'constructing newly old house'. So i presumed it not to be renovation. If renovation, u r right, no exemption u/s 54F.
Kavyaa
(Budding CA)
(107 Points)
Replied 20 August 2015
CAclubindia
