13 December 2018
We have a client who has long term capital gain during the A.Y.2019-20 around 40 lacs While computing tax liability, I want to make it clear that can I avail the benefit purchase of residential flat.
14 December 2018
Yes, subject to the following - * exemption of capital gain is available in case of transfer of long term capital assets against investment in residential house.- section 54F
*the exemption is available only to individual and HUF;
*capital gain has arisen on account of transfer of any long term capital assets other than residential house;
* net consideration arisen on account of transfer of long term capital assets has been invested as follows –
i) net consideration has been re-invested in purchase of one residential house within a period of 1 year before the date of transfer or within a period of 2 years after the date of transfer; or
ii) net consideration has been re-invested in construction of one residential house in India within a period of 3 years from the date of transfer.
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