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Capital gains on house prperty

naresh kumar (director) (54 Points)

20 December 2019

I have sold residencai flat on LTCapital gain 2700000/- in asst year 2020-21. can I purchased new Flat Re. 40 Lac with my daughter on 70 -30 ratio and she take loan from bank Rs. 12 Lac & I invest 28 Lac. what is the position of capital gain u/s 54 .what is tax liability of capital gain tax

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4 Replies

Kapadia Pravin (17259 Points)
Replied 20 December 2019

You are entitled to section 54 deduction.
No tax liability on LTCG.

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CMA M.Keerthi chandra (C.A FINAL STUDENT AND QUALIFIED C.M.A) (561 Points)
Replied 20 December 2019

Purchase of New House shall be with in one year or if it is construction the time limit is 3 years

rama krishnan (12239 Points)
Replied 21 December 2019

Yes you are eligible for 54 deductions. a small correction to Mr keerthi statement , the time limit is 2 years from the date of sale of original asset

CA Arun Tiwari (Partner) (5955 Points)
Replied 23 December 2019

As far as the assessee’s investment is concerned, the Tribunal in one of the major cases upheld that the assessee is eligible for exemption under Section 54F of the Act even though the investment was said to be made in the joint name of assessee and her husband. So the position of Capital gains u/s 54 will be exempt under section 54 as Capital gain is Investing in another Residential Property.