12 January 2013
Case Study: I have sold a shop from which there was a capital gain of Rs.50 Lac & I invested it in a residential house.Later on After 2 years i sold the house.So there was a long term capital gain in the previous year in which i sold the new house.This long term capital gain I again reinvested in purchasing a new house. so will I be able to take exemption of long term capital gain.
12 January 2013
If you are selling a shop- for getting full exemption U/s 54F, just Capital Gain is not required to be invested. You have to consider "Sales Consideration" for getting exemption. . Assuming that you have invested 70 lacs in new residential house and sold the same for Rs. 93 lacs. 23 Lacs is STCG and 50 lacs is deemed Long Term Capital Gain exemption in respect of the same has been claimed before 2 years. . As the deeming fiction has not been limited for specific sub-section (3) of S 54F, such long term capital Gain will be deemed to be LTCG U/s 54F(1) also. . Conditions of Proviso (a)(ii)of S 54F(1) as well as S54F(2) have also been duly complied with, in my view you may get exemption U/s 54F even after transferring the new asset. .