Capital Gain

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siddharth bodas (Querist)
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20 June 2011 According to sec 54 if sale proceeds of one house is invested in Another house property then no capital gain tax is attracted. And according to Sec 54 F if Proceeds of any long term assets sale is invested in residential house then capital gain tax is not attracted.

assets I want to sell
House -market prise 70,00,000
Unlisted shares -MP 37,00,000
If I sell both of thease assets, and form their sale proceeds purchase new Residential house for1,20,00,000
can I take advantage of both sections simentiounsly i.e. Sec 54 & 54 F

Thanks,
CA Siddharth Bodas

ABHISEK TOSNIWAL

ABHISEK TOSNIWAL (Expert)
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20 June 2011 Dear Siddharth,

As per Sec 54F, if you sell any Long term capital asset other than House property and Purchase house property out of the sale proceeds then you can get deduction (to be calculated)u/s 54F. So when you sell House property and purchase House property you can get benefit U/s 54 & not under sec 54F.

Regards
Abhisek Tosniwal

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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21 June 2011 u will get ex under section 54 in respect of gains from house and under section 54F in respect of gains from shares
there is one case also which supports the situation though facts are different
Ravindra K. Mariwala v. Joint CIT (2003) 86 ITD 35 (Mum-Trib)

CA MANOJ GUPTA
JODHPUR
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