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Capital gains

pallavi (article) (140 Points)

17 July 2012

Hey can any one guide me whether two Long term capital gain [i.e (1.) September 2011, (2) May 2012] on sale of House property is eligible for exemption u/s 54 for the purchase of House property made in June 2012............(in short : 2 long term capital gain and investment in one house property )

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7 Replies

Ashish (CA) (166 Points)
Replied 17 July 2012

Yes you can subject to condition for resp section

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pallavi (article) (140 Points)
Replied 17 July 2012

Thank you ashish..........can you just share respective case law or section......bcz in sec 54 no where its stated dat Investment can be set off against 2 capital gains

Prateek Agarwal (Sr. Executive - Finance & Accounts) (1732 Points)
Replied 17 July 2012

Yes they can be utilised for the June 2012 house purchase.

Prateek Agarwal (Sr. Executive - Finance & Accounts) (1732 Points)
Replied 17 July 2012

Sec 54 are time based. You have to invest in CGAS within due date of filing your return i.e. July 2012.

As such, when you had already purchased the house property in June 2012, there would be no need to deposit the same in CGAS, Hence, time limit is met in both the cap gains, making it eligible for utilisation in One house property purchase.