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Capital Gain Investment

13 February 2019

I have sold my house for 85 Lakh and the capital gain is 12 Lakh. Do I have to invest minimum12 Lakh or 85 Lakh in buying a new property to avoid capital gain tax.

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2 Replies

Giridhar S Karandikar (Team Lead) (7548 Points)
Replied 14 February 2019

you need to invest the capital gains and not the whole consideration under section 54.. so 12lacs need to be invested.
if you are unable to invest the capital gains before due date of return then you needed to deposit the same in capital gains account scheme of notified bank and claim exemption for that year.

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PUSHP KUMAR SAHU (CA FINAL ASPIRANT) (3115 Points)
Replied 16 February 2019

Sir,
if you opt for section 54 than you are required to invest capital gain amount in purchase of new house subject to certain conditions as given in section

secondly, if you opt for 54F than you are required to invest entire net consideration in construction or purchase of new house as the case may be.

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