Understanding capital gains tax exemption under Section 54
2 years, 9 months ago

Understanding capital gains tax exemption under Section 54

Business Standard  

The profit earned from the sale of a house is taxed as a capital gain. If in this case, the seller was liable to pay income tax on capital gains arising from the sale of the old house, then it would impose a hardship on him. Under Section 54 of the Income Tax Act, a seller can av­ail of tax exemption on the capital gain arising from the transfer of a residential house property. But with effect from Assessment Year 2021-22, the Finance Act, Section 54 has been amended to extend the benefit of exemption in respect of investment made in two residential house properties, provided the amount of long-term capital gain does not exceed Rs 2 crore. The exemption under section 54 is available in respect of the rollover of capital gains arising on the transfer of a residential house into another residential house.

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History of this topic

How will my property sale be taxed after I relocate to India?
3 weeks, 4 days ago

How will my property sale be taxed after I relocate to India?

Live Mint  

I have worked outside India for 12 years but I will be relocating back to India in April for a better employment opportunity at an MNC. Tax implications on selling immovable property in India As a resident, when you sell immovable property in India, the buyer is required to deduct TDS at 1% if either the sale price or the …

How exemption under Section 54F for long-term capital gains on the sale of a plot of land is computed?
1 month ago

How exemption under Section 54F for long-term capital gains on the sale of a plot of land is computed?

Live Mint  

I have sold a plot of land for ₹67 lakh. If I invest the long-term capital gains of Rs35.40 lakh in a residential flat, I understand that I do not have to pay any tax due to the exemption available under Section 54F. Since you have sold a plot of land and not a residential house, you can claim an …

Income Tax Bill 2025: Long-Term Capital Gains Tax on property remains unchanged
1 month, 1 week ago

Income Tax Bill 2025: Long-Term Capital Gains Tax on property remains unchanged

Hindustan Times  

There are no changes to the taxation of long-term capital gains derived from residential property in the new Income Tax Bill 2025. Income tax bill 2025: For property bought prior to July 23 2024, the tax on LTCG is computed as lower of 12.5% or 20%, plus surcharge and cess For property acquired prior to July 23, 2024, the tax …

Turn capital gains into your dream home by leveraging the power of gifting
2 months ago

Turn capital gains into your dream home by leveraging the power of gifting

Live Mint  

For those who wish to use profits from shares, mutual funds, land or commercial property to buy their dream home, the government allows tax exemption on such gains under Section 54F. Scenario 5: Ashish sells the shares and land and uses the gains to buy a property directly in daughter’s name The law on Section 54F says that to qualify …

Where to keep the money until house investments are made for Section 54 exemption?
2 months, 2 weeks ago

Where to keep the money until house investments are made for Section 54 exemption?

Live Mint  

I plan to dispose of a flat I bought about 16 years ago. Please let me know whether I have to keep the sale proceeds in any specified form of investment to avoid capital gains tax. Section 54 gives exemption to an individual and a HUF from tax on long-term capital gains arising on the sale of a residential house, …

Flat sale completed: What is the date of transfer for tax purposes? Is it the date of agreement or receipt of money?
3 months, 2 weeks ago

Flat sale completed: What is the date of transfer for tax purposes? Is it the date of agreement or receipt of money?

Live Mint  

I have sold my residential flat this month. Property Sale Completed: Key Tax Implications for ₹ 70 Lakh Gains Explained Since the ownership of the property stands transferred on the execution of the sale deed on which the transfer happened. Please note that after the removal of the indexation provision for practically all the purposes from the current year, you …

Putting Together Structure Of Plywood Sheets Can't Be Construed As Constructing 'Residential House' For Claiming Capital Gain Exemption: Delhi HC
4 months ago

Putting Together Structure Of Plywood Sheets Can't Be Construed As Constructing 'Residential House' For Claiming Capital Gain Exemption: Delhi HC

Live Law  

“Putting together a structure of plywood sheets cannot be construed as constructing a residential house,” the Delhi High Court has held. Section 54 exempts tax on long term capital gains from the sale of residential property if the proceeds from such sale are reinvested in purchasing or constructing another residential property within a specified time frame. Significantly, the ITAT had …

S. 54F Exemption Not Available On Property Predominantly Being Used For Religious Purposes: ITAT
1 year, 2 months ago

S. 54F Exemption Not Available On Property Predominantly Being Used For Religious Purposes: ITAT

Live Law  

The Hyderabad Bench of Income Tax Appellate Tribunal has held that exemption under Section 54F of the Income Tax Act is not available on property predominantly being used for religious purposes.The bench of R.K. Panda and Laliet Kumar has observed that the property is predominantly being used for religious purposes, namely mosques, orphanages, and. The Hyderabad Bench of Income Tax …

Joint Ownership Of The Property Is No Bar In Claiming Exemption Under Section 54F Of The Income Tax Act: ITAT
1 year, 9 months ago

Joint Ownership Of The Property Is No Bar In Claiming Exemption Under Section 54F Of The Income Tax Act: ITAT

Live Law  

The Mumbai Bench of the Income Tax Appellate Tribunal has allowed the deduction under Section 54F of the Income Tax Act on the grounds that the assessee is not the exclusive owner of multiple residential properties occupied by other family members.The bench of Kavitha Rajagopal and Om Prakash Kant has observed that the joint ownership of the. The Mumbai Bench …

Proposals relating to Capital gains in Finance Bill 2023
2 years, 1 month ago

Proposals relating to Capital gains in Finance Bill 2023

Live Mint  

The finance minister has proposed some provisions dealing with capital gains in the budget presented Wednesday. Cap on availing long term capital gains by Investment in a residential house Present Tax laws allow you exemption from long term capital gains if you invest in acquiring a residential house within specified time limits. Section 54 allows you exemption on long term …

Purchase Of New House Without NOC From AO Within 2 years: ITAT Allows Capital Gain Exemption
2 years, 7 months ago

Purchase Of New House Without NOC From AO Within 2 years: ITAT Allows Capital Gain Exemption

Live Law  

The Income Tax Appellate Tribunal, Delhi Bench has held that the capital gain exemption is allowable even when the amount invested in a capital gain account is utilised for the purchase of a new house without a NOC from AO within 2 years. The assessee has derived income from house property, capital gains, and income from other sources. The AO …

Income tax: This is how you can you seek exemption from long term capital gains
2 years, 8 months ago

Income tax: This is how you can you seek exemption from long term capital gains

Live Mint  

As the deadline to file income looms closer on July 31, taxpayers must be busy arranging the essential documents to be able to meet the deadline. For instance, the sale of immovable assets comes under long term capital gains if sold after two years and the time period reduces to one year in case of securities and mutual funds. To …

Husband Entitled Capital Gain Exemption For Asset Bought In The Name Of The Wife: ITAT
2 years, 10 months ago

Husband Entitled Capital Gain Exemption For Asset Bought In The Name Of The Wife: ITAT

Live Law  

The Jaipur Bench of the Income Tax Appellate Tribunal consisting of Dr. S. Seethalashmi and Rathod Kamlesh Jayantbhai held that the husband was entitled to a capital gain exemption for assets bought in the name of the wife. Out of sale consideration, the assessee made an investment in the purchase of a new residential house property in the name of …

I want to buy two flats by selling one. What are the income tax implications?
3 years, 7 months ago

I want to buy two flats by selling one. What are the income tax implications?

Live Mint  

Can I buy two house properties from the sale proceeds of a one residential house held by me for more than 24 months, without paying any income tax? Under Section 54 of the Income Tax Act, an individual tax payer is entitled to claim exemption from payment of tax on long term capital gains arising from sale of a residential …

Budget booster likely for capital gains on property & equity
5 years, 2 months ago

Budget booster likely for capital gains on property & equity

India TV News  

In what is being billed as a make or break Budget to revive the economy, the Modi government is likely to introduce heavy duty measures for rationalization of key equity taxes, including scrapping capital gains on sale of property, shifting the tax applicability of dividend distribution tax to the receiver and extending the timeline of long term capital capital gains …

Real estate investment: Homebuyer must look into taxation aspects of rental income, gains from property sale
5 years, 10 months ago

Real estate investment: Homebuyer must look into taxation aspects of rental income, gains from property sale

Firstpost  

An individual who has earned long-term capital gains on the sale of real estate can claim an exemption under Section 54 if he reinvests the gain in another property. Similarly, if a taxpayer sells the property after 24 months, then the income will be treated as long-term capital gains; this gain is taxed at 20 percent after indexation. Exemption available …

Opinion | How will LTCG benefit work as per new laws
6 years, 1 month ago

Opinion | How will LTCG benefit work as per new laws

Live Mint  

One of the most significant exemptions available for individuals under our tax laws is that relating to exemption of long-term capital gains, made on the sale of a residential house, if it’s reinvested for the acquisition of a new residential house. The exemption is available for capital gains arising on sale of a residential house, which is a long-term capital …

LTCG computation same for residential house, plot
6 years, 4 months ago

LTCG computation same for residential house, plot

Live Mint  

What is the difference between selling a residential house and a residential plot? —Ashu From a tax computation perspective, the manner of classification as long term and computing gross LTCG on the sale of a residential house and a residential plot is identical. In the case of sale of a residential plot, an exemption can be sought in any of …

Conditions apply to tax exemptions on capital gains reinvested in house
7 years, 6 months ago

Conditions apply to tax exemptions on capital gains reinvested in house

Live Mint  

Provisions in the Income Tax Act, 1961, allow an individual to bring down or avoid paying tax on capital gains from transfer of residential property. If you have capital gains from the sale of a residential property and are considering reinvestment to save taxes, take a look at these conditions. To claim the tax exemption on the entire capital gains …

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