Exemption on ltcg on sale of immovable property

This query is : Resolved

JAYAKUMAR.M.G

JAYAKUMAR.M.G (Querist)
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17 June 2013 Sir
One of my client is going to sell his Long term Capital asset , a flat, which will earn him a LTCG of Rs 10 Laks.Now for availing the exemption should he invest in Rs 10 Lakhs in new residetial Building or the full amount of sale consideration
Please clarify
Rgds

Rupesh Jain

Rupesh Jain (Expert)
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17 June 2013 u./s 54 invest only capital gain amount

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CA Kapil Verma

CA Kapil Verma (Expert)
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17 June 2013 No, you need to invest full sales consideration for getting 100% exemption.

You you invest less amount expmption will be received proportionatelyas follows:

LTCG X Amount Invested
-------------------- =
Sales Consideration

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Guest

Guest (Expert)

17 June 2013 If house property is sold, and new house property is purchased.

only capital gain amount is required to be invested to claim exemption u/s 54(i.e new house property is purchase after sale of older house property)

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