Property Sold: Long Term Capital Gains: Time Period

Tax queries 916 views 5 replies

Hi,

I had sold 2 properties (one Office & one Residential Premise) located at Mumbai on 3rd March 2010.

What are my options to prevent Long Term Capital Gains tax for both transactions.

Please advice.

Thank you.

Best regards,
Sanjay

Replies (5)

Sorry for the shameless bump, but help pls.

Thx
Sanjay

for the purpose of residential house sold, u have an option to acquire another residentil house withing a period of 2 years from the date of sale or CONSTRUCT a new house within a period of 3 years from the date of Sale of property. then u can get exemption u/s 54.

 

For office sale, u have an option u/s 54F to spend on Residential House all consideration or to invest in NHAI or RECL within a period of 6 months. but unfortunately u cant invest in NHAI and RECL coz time has been over. so u can avail exepmtion only u/s 54F by spending whole consideration in Residential house acquisition or construction.

 

Thank you Sunny for your prompt & detailed reply.

I have some doubts:

(1) Time limit for buying a new house (to avail exemption under u/s 54) is 1 year or 2 years?

(2) Can I buy a residential flat against sale of office premise and still avail of the exemption u/s 54 ?

Thank you again.

Best regards,
Sanjay

 

Sorry for the shameless bump again, pls advice!

Sanjay

yes time limit of buying or acquiring of residential house is 2 years.

 

if u sell office property and it is long term property and purchase house for residence, then u can clain exemption u/s 54F only.


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