30 January 2009
I have recently sold my flatin Kolkata.Ilive in my house in Gurgaon. I have constructed a small self-contained flat on the roof of this house, for renting out. Am I entitled to any Capital Gains Relief?
My Question was: Do I get any relief ofcapital gains tax for selling house in Kolkata by constructing a new self-contained flat (for renting out) on the roof of my present house in Gurgaon? Please answer in some detail. Tapas Majumdar
31 January 2009
Construction of first floor in the existing building shoud be treated as independent residential unit and is,therefore,entitled to capital gains exemption u/s 54 of the Income Tax Act,1961. Citation:- P.V Narasimhan's case reported in 181 ITR 101. Pl bear in mind that the conditions specified in that section has to be complied with for which you may visit www.incometaxindia.gov.in and refer section 54.
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