12 July 2010
A property was sold for Rs. 5,00,000/- and its indexed cost of acqusition comes to Rs. 3,00,000/-. Therefore the capital gain wil be Rs.2,00,000/- To avail the benefit U/s 54 the assessee buys a property within a month for Rs. 1,50,000/- and spends Rs. 1,00,000/- for the furniture and fittings. Then how much will be the exemption for the assessee. Whether it should be Rs 2,50,000/- or Rs. 1,50,000/-.
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