Capital gains exemption u/s 54

Section 54
Exemption for residential house
 
LTCG(Long term capital gain) on transfer of residential house shall be exempt if the amt. of capital Gains is utilised for purchase/construction of new residential house within the following time limit.

TIME LIMIT
The new house should be purchased within 1 year before the date of transfer or 2 years after date of transfer or it should be constructed within 3 years of transfer.

SCHEME OF DEPOSIT
If the new asset is not acquired upto the due date of filing return then the assessee should deposit the desired amount in a special account opened in accordance with capital Gains accounts Scheme, 1988.
The deposit amt. is not utilised then the exemption allowed shall be withdrawn.

AMT OF EXEMPTION
1) Amt. of only Long term Capital Gains
2) Cost of New Asset/Amt. deposited

 

LOCK IN PERIOD
The new asset should not be transferred within 3 years from the date of its purchase. If the new asset is transferred within 3 years then the exemption will be withdrawn.

ELIGIBLE ASSESSEE
Individuals & HUF
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