Claiming exemptn. of long term cap. gains tax u/s 54ec+54f

1396 views 2 replies

A vacant plot of land was sold for a net sale consideration of Rs.1,10,36,000/-. The fair market value, after indexation, of the land, as on 01/04/1981, was Rs.19,39,091/-. Hence, Long Term Capital Gain was Rs.90,96,909/-.

 

The following are the investments made and proposed to be made for claiming tax exemption:

1)Rs.50,00,000 in NHAI plus REC bonds for exemption u/s 54EC(now, investment already made),

2)Rs.60,36,000 in a residential property for exemption u/s 54F(proposed to be made)

 

Please advise:

a)computation of the total tax exemptions that can be availed,

b)total Long Term Capital Gains Tax payable after considering the exemptions. 


 

Replies (2)

Hi,

 

Find the calculation below:

 

 Net Sale consideration = 11036000

Indexed cost of asset = 1939091

Capital gains = 9096909

Less: Exemption

Sec. 50EC = 5000000

Sec. 54F = 4975439

Total exemption is 9975439 subject to maximum of capital gains which is 9069909/-

 

Hence, the whole of capital gains are exempt.

Computation u/s 54F:

(6036000 / 11036000) x 9096909 = 4975439/-

Thank you very much, Ashish.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 14 July 2026
Article Assistants

R Shyam and Associates

New Delhi

CA Final

View Details
Company
23 July 2026
CA Inter

Vikram Jadhav and Company

Pune

CA Inter

View Details
Company
29 June 2026
ACCOUNTANT

SANDEEP AASHISH & CO

Araria

B.Com

View Details
Company
ARTICLESHIP 10 July 2026
Article Assistant

N S Gokhale & Co

Thane

CA Inter

View Details
Company
14 July 2026
Senior Executive/ Manager

H S SHARMA AND CO

Pune

CA Final

View Details
Company
06 July 2026
Chartered Accountant (Indirect Taxation)

Gowra Ventures Pvt Ltd

Hyderabad

CA

View Details
Company
Featured 18 July 2026
Senior Manager- Finance & Accounts

apricus india

Ahmedabad

CA

View Details
Company
ARTICLESHIP 15 July 2026
CA Articles

Kinjal H Shah & Co.

Mumbai

CA Foundation

View Details