Ltcg on property

Dear Piyush,

Yes you are correct.  If the consideration is less than the stamp duty value, then section 50c shall become operative.

nice thread going 

Hi

What is it in the case of SCF(shop cum flat) property as commercial activity is allowed only on Ground floor and the First & Second floors are for residential purposes.If i sell a residential house and buy a SCF.

Is it considered as commercial property in income tax ?

Is it excempted from capitals gains?

Or is there any percentage of the property as commercial and residential?

Originally posted by : Aryan Singhania (Pallav)
	Quantum of Deduction under Section 54: Capital Gains shall be exempt to the extent it is invested in the purchase and/or construction of another house i.e.   If the entire amount is equal to or less than the cost of the new house, then the entire capital gain shall be exempt.   If the amount of Capital Gain is greater than the cost of the new house, then the cost of the new house shall be allowed as an exemption.

Is there a limit on the number of property, that an individual can have, to avail exemption? 

I had two questions on the LTCG.

1. If I sell 2 sites and invest in a residential property, would the LTCG from both sites be eligible for exemption of LTCG tax? 

2. Do I get LTCG tax exemption if the LTCG amount is invested in buying a new site AND construction of the house. Or, is the exemption allowed only for the construction of the house but not for buying the site.

-Srinivas