Long term capital gain and sec 54ec exemption related issue.

How can compensation received from landlord (for rented property) be treated as LTCG?

IT IS A LONG TERM CAPITAL GAIN AS PER TENANCY RIGHT. IF A PROPERTY IS UNDER RENT FOR MORE THAN 12 YEARS THEN AS PER TENANCY BRIGHTS IT WILL BE TREATED AS A  CAPITAL ASSET.

Okay. In that case, tenant will be the deemed owner of the house property as you have rightly said. Options I could think of are:

1. Exemption u/s 54 (to buy another residential house provided relevant conditions are satisfied) or
2. Exemption u/s 54GB (but this is complex)
3. To defer tax liability, deposit in capital gain deposit account. But if not utilized within the time limit, LTCG is payable in future.

THAT IS CORRECT BUT I HAVE MADE THE INVESTMENTS IN NHAI BONDS INSTEAD OF IN ONE RESIDENTIAL HOUSE HENCE ELIGIBLE FOR 54EC EXEMPTION.

What I said is in addition to 54EC other exemptions are also possible in respect of unutilized LTCG

TAHNK YOU!!

I AM AWARE OF THOSE EXEMPTIONS TOO. BUT I HAVE A DOUBT ON THE ISSUE THAT FOR SEC 54 DO WE NEED TO DEPOSIT THE LTCG UNUTILIZED IN  CAPITAL DEPOSIT SCHEME ACCOUNT IN THE SAME YEAR OF TRANSFER OR LATER PERIOD.

Deposit in CG account within due date for filing return of income