15 April 2012
1. Section 50 is a Special Provision for computation of capital gains in case of depreciable assets and the resulting capital gain is treated is short term capital gain. .
2. The Gain is STCG but no where in Section 50 it has been mentioned that the asset will (always) be treated as Short Term Capital Asset. . 3. Section 54F is applicable with the Basic Condition of- Transfer of Long Term Capital Asset. . 4. In this section no where it has been mentioned that exemption is available for Long Term Capital Gains only. However, it can be appreciated from the section that deduction is available only in respect to the Capital Gains (of whatever type). . 5. For the purpose of availing exemption we have to take care of both the Sections. . 6. So STCG of Point No 1 can be RENAMED AS CAPITAL GAIN for the purpose of Section 54F. . 7. As you have invested entire sales consideration , you will avail 100% exemption. . 8.When investment in Residential House is less than the sales consideration amount exemption will be calculated on proportionate basis on CAPITAL GAIN (STCG). .
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