Section 54 exemption :
This query is : Open
22 June 2009
Please update me on the following issue.
I had a Long term capital gain (on transfer of Residential house) during F.Yr 2008-09, However since i bought a new residential house during 2008-09 at a cost which is more than my Capital gain during 08-09 i need not pay any tax on CG. Now If i sell another residential house during F.yr 2009-10 & if that results in Long term capital gain, can i claim the difference amount (F.yr 08-09 Cost of new asset - Capital Gain exempt)as exemption u/s 54 during F.Yr 2009-10. (Since section stipulate the date 1 year backward & 2 year forward. Kindly update me.
Regards,
Hemanth Kumar.
I had a Long term capital gain (on transfer of Residential house) during F.Yr 2008-09, However since i bought a new residential house during 2008-09 at a cost which is more than my Capital gain during 08-09 i need not pay any tax on CG. Now If i sell another residential house during F.yr 2009-10 & if that results in Long term capital gain, can i claim the difference amount (F.yr 08-09 Cost of new asset - Capital Gain exempt)as exemption u/s 54 during F.Yr 2009-10. (Since section stipulate the date 1 year backward & 2 year forward. Kindly update me.
Regards,
Hemanth Kumar.
22 June 2009
Will you please explain your query further? The second house which you are planning to sell in FY 2009-10 is which house? All together different house or the house you have bought by investing the capital gains during 2008-09.
Anyways if an assessee has claimed exemption from Capital Gains by investing in the property, he/she cannot sell it within 3 years of its acquisition. If does so, whole of the Capital Gains exempt earlier gets taxable in the year of sale.
Anyways if an assessee has claimed exemption from Capital Gains by investing in the property, he/she cannot sell it within 3 years of its acquisition. If does so, whole of the Capital Gains exempt earlier gets taxable in the year of sale.
22 June 2009
Hi Hemanth,
In my opinion you can certainly claim the deduction u/s. 54 on the difference on the purchase price minus capital gain of earlier property.
In my opinion you can certainly claim the deduction u/s. 54 on the difference on the purchase price minus capital gain of earlier property.
23 June 2009
Thanks for your views, again dear Vipul the house which i am planning to sell is altogether a new house which was purchased during 2003-04. can u please re update me after considering the above.
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