Long term capital gain exemption

Tax planning 714 views 3 replies

Vikas

proprietor

25 Points Posted on 06 December 2012

Dear Friends

I have a query regarding exemption of LONG TERM CAPITAL GAIN on Sale of a Residential Plot. Facts are as follows:

1) The Assessee has sold a residential plot of land during 2012-13 and earned long term capital gain.

2) He owns two residential houses (i) One jointly with his wife (ii) one jointly with his brother.

3) there are two sections under which exemption can be claimed :

(i) Section 54EC by investing amount of capital gain in specified bonds within 6months of sale.

(ii) under section 54F if certain conditions are fulfilled. (and the amount can be deposited with a specified bank under capital gain account scheme.

I want to know whether

(i) exemption under section 54EC can be claimed.

(ii) Whether he is eligible for exemption under section 54F, since he owns two houses though in joint name.

Thanks & Regards

CA Vikas Kapoor

Replies (3)

archana bakshi

Student

227 Points Posted on 06 December 2012

GO to the following links

/articles/capital-gains-exemption-u-s-54ec-of-income-tax-act-1961-13227.asp#.UMBgIoNJ5aA

Giridhar S Karandikar

Team Lead

7558 Points Posted on 12 December 2012

he can't claim exemption u/s 54F as he owns more than two houses at the date of transfer. However if he is the secondary owner in any one of the houses then I think he can claim exemption u/s 54F, but section 54F does not dpeaks about such type of assessee, so as per law he can't claim exemption u/s 54F

But he can claim exmeption u/s 54EC by investing in bonds of NHAI or REC within 6months from the date of transfer. He can maximum exemption upt Rs.50lacs only.