Lovendeep Sharma (ACCOUTANT) (58 Points)
13 December 2017THE ASSESSE HAS SOLD RESIDENTIAL HOUSE DURING THE YEAR 2017-2018 ,WHTETHER THERE IS ANY EXEMPTION/LIABILITY OF CAPTIAL GAIN TAX ON SALE OF RESIDENTIAL HOUSE WHICH WAS GIVEN BY THE PARENTS AS GIFT OF PLOT AS PER GIFT DEED, BUT ACTUALLY IT IS A RESIDENT HOUSE OF WHUICH THE ASSESSE HAV NO PROOF BEING A RESIDENT ALLOWANCE..
PLEASE REVERT ONTHIS ISSUE.
LOVENDEEP SHARMA
Rakesh Bandal
(Self Employed and Agriculture)
(1349 Points)
Replied 13 December 2017
Please refer section 54 of Income Tax Act for Exemption / Liability and for Indexation purpose refer case law of Manjula J. Shah
and for gift transction from parents tax will not be attracted
Prajjwal Kaushik
(Finance Professional)
(6216 Points)
Replied 14 December 2017
Whether it is a Residential House or not?
For this question, I would recommend you to take a close to the Conveyance Deed (Registry) of the sale of the House. In general, it is always mentioned therein that the property which is being sold was it an agricultural land or residential property, what are its specifications. That might help.
It is mentioned as Plot in Gift Deed
In this regard, to claim exemption from capital gain the status at the time of sale is considered not the status at the time when the property was received.
What are the exemptions available?
Section 54: Old Asset - Residential Property; New Asset - Residential Property
Section 54EC: Old Asset - Any Asset; New Asset - Specified Bonds
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