There is no tax exemption on capital gains spend on renovating house – Here is the reason As per Section 54 of Income Tax Act, any long term capital gain arising from the sale of a residential property shall be exempt to the extent such capital gain is invested in the purchase of another residential property within one year before ortwo years after the due date of transfer of the property sold or construction of residential house property within a period of three years from the date of transfer/sale of property.
Krishna @ r u sure sir that I can use money for construct 1st floor of existing residential house for getting exemption u/s 54. plz check and conclude. thanku
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