Capital gain

Tax queries 723 views 5 replies

Hi Friends

Kindly help me about below mentioned topic:

My friend sold some gold last months. There is long term capital gain. If he invest all money in to a flat, then long term capital gain is tax free or not?

Kindly help

Thanks

Ajay

Replies (5)

yes by way of investing the sale proceeds in a residential house property within 3 years, he can get exemption u/s 54F......

Originally posted by : Sunshine...

yes by way of investing the sale proceeds in a residential house property within 3 years, he can get exemption u/s 54F......

 


Provided the assessee doesnt owns more than one residential house

Yes, you can get the exemption u/s 54F by investing the sale proceeds in Residential House. Section 54F is a benevolent provision meant for tax relief  where the sale consideration is deployed in acquisition or construction of a residential house by the taxpayer.

Key factors governing the tax exemption under this section are: 

  1. 1. Sale must be of any long-term capital asset other than residential house; 
  2. 2. On the date of sale, the taxpayer must not own more than one residential house; 
  3. 3. Net sale consideration must be deployed in acquisition or construction of a residential house within the specified time i.e., before 1year or after 2years; and 
  4. 4.No acquisition or construction of any more residential house during the specified Lock-in period.




agree with Mr. Suresh & Sunshine

consider section 54 f


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