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Exemption u/s 54 f

Tax queries 421 views 1 replies

Which amount should be invested for claiming exemption u/s 54 F, whether it should be actual sale consideration or sale consideration u/s 50 C of I.T Act 1961.

And which amount should be taken for computing proportionate exemption of capital gain u/s 54 F i.e. actual sale consideration or sale consideration u/s 50 C if investment is made lower than the sale consideration. 

Replies (1)

Entire capital gains are exempted when the amount of investment is equal or greater than the net consideration else the proportionate exemption is allowed.

 

The amount of exemption available is derived as...

Amount of investment X Capital Gains/Net Consideration

 


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