Section 54 of income tax act

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 March 2016 Exemption can be claimed from Section 54, to the extend of Capital Gain or for Whole Property Sold? Kindly guide me with the Section in detail.

Jaymin Sabhaya

Jaymin Sabhaya (Expert)
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19 March 2016 Dear Sir,
The amount of exemption under section 54 of the Income tax Act, 1961 will be lower of the following amount ---
1. The Amount of Capital Gain arising on transfer of the residential property or
2. The Amount Invested in purchasing new residential property.
therefore, in any case exemption under section 54 can not exceed the amount of capital gain.