20 June 2011
An Assesse Purchases A Resi. House say for Rs.20 lacks, then sells his old house for Rs.25 lacks. Now he renovates the newly purchased house and makes expenses of Rs.5 lacks. will he be liable to pay LT GainTax?
20 June 2011
Assessee can claim exemption u/s 54.But expenditure incurred on renovation is eligible.Only cost of new house is eligible.So assessee has to pay tax on 5 lacs LTCG.
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