Capital gain

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Eswar Reddy S (Querist)
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21 December 2013 Hi, I have a small doubt in capital gain on residential property. For example I had a longterm capital gain of Rs.20,00,000 for AY-2007-08. I had invested Rs.20,00,000/- in property in AY-2008-09. If I sell the property in 2014 March , can I claim the cost of acquisition. I have confusion Since it has already claimed as an exemption u/s 54, how can I get deduction of cost of acquisition once again. I think it is a double benifit. please suggest whether cost of acquisition is deductible twice , one in the form of section 54 another in the form of indexed cost of acquisition. Regards Eswar Article Trainee

Nikhil Kaushik

Nikhil Kaushik (Expert)
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21 December 2013 yes you can. Once the three year period expire, you can go ahead and claim the indexed cost of the new asset and deduct it from the consideration received.