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Sec 54 capital gain

krishan agrawal (Student CA Final ) (38 Points)

11 April 2015

Can we claim exemption more than capital gain if cost of new asset/investment is more than net consideration.

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Shishir Nayak ((Expert)) (369 Points)
Replied 11 April 2015

If cost of new house is more than capital gain than entire capital gain will be exempted.

If the amount of capital gain is more tha cost of new house than the cost of new house will be exempted.

Amrita vyas (chartered accountant) (2600 Points)
Replied 11 April 2015

agreed with above

Srividya Murali (Article Assisstant) (211 Points)
Replied 11 April 2015

agreed with shishirji

Gnanashekar.R (Chartered Accoutant) (64 Points)
Replied 12 April 2015

Can a person claim exemption u/s 54, if he sells 2 residential property and invest entire money in one residential property? Can he get exemption for both the house?

Shishir Nayak ((Expert)) (369 Points)
Replied 12 April 2015

There is no restriction placed in section 54 which restricts exemption only in respect of sale of one residential house. Even if assessee sells more than one house in the same year and the capital gains is invested in a new residential house, the claim of exemption cannot be denied if other conditions are fulfilled..

But restriction is you can avail exemption amount invested in one house property.

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