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Income from Capital Gain - Exemption u/s 54

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Sri Ranjini Venkatachalapathy

55 Points Posted on 11 August 2021

Hello,
Good day to all.
I have received an amount from Sale of a house which my Parents transferred to me as Gift Deed.
Now should I purchase only a new residential house property to claim Exemption under section 54.

Replies (3)

Quick Summary

This discussion clarifies how to claim capital gains tax exemption under Section 54 after selling a gifted property. It confirms that purchasing a new residential property within two years or constructing one within three years of the sale can qualify for exemption. Additionally, it mentions the possibility of claiming exemption under Section 54EC by investing in specified bonds within six months of the transfer date.

Mahesh Shah

2478 Points Posted on 11 August 2021

Sir,
As far as I understand, & assume your Q's,
1) u have been gifted with house from parents.
2) u have sold house,
Now u want to claim various deductions as applicable under 54

please reff to my previous ans, in this forum. to understand sale procedure. indexation, & deductions

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 11 August 2021

Yes you can purchase property within 2 years of transfer or construct a new property within 3 years from transfer also you can get deduction under section 54EC by investing in specified bonds within 6 months from the date of transfer