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 exemption from long-term capital gains under Section 54F and not under Section 54. Section 54F requires you to invest the net sale consideration in a residential house to avail the exemption from long-term capital gains. Understanding Long-Term Capital Gains Exemption: Key Differences Between Section 54F and Section 54 for Land Sale The provisions of Sec.

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History of this topic

How will my property sale be taxed after I relocate to India?
3 weeks, 5 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 on long-term capital gains for the sale of agricultural land can be claimed?
4 weeks ago

How exemption on long-term capital gains for the sale of agricultural land can be claimed?

Live Mint  

For agricultural purposes, I intend to sell my urban agricultural land within the municipal limits, which has been repurchased for ten years. Agricultural land in a rural area is not a capital asset u/s 2; therefore, no capital gains arise on its sale. However, urban agricultural land is considered a capital asset, and profits from selling such lands would be …

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, …

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 …

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 …

Want to buy a house by redeeming mutual fund investments? Tax rules explained
2 years, 9 months ago

Want to buy a house by redeeming mutual fund investments? Tax rules explained

Live Mint  

I am planning to buy a residential flat by investing the redemption proceeds of my mutual funds investment. Answer: Section 54F of Income Tax Act, allow an individual and an HUF to claim exemption from long term capital gains arising from sale of an asset other than a residential house if the net sale consideration received on sale of such …

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 …

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 …

Budget 2020: Income tax rules on gains from gold, property sale, stocks likely to change; tax treatment for LTCG may be revised
5 years, 2 months ago

Budget 2020: Income tax rules on gains from gold, property sale, stocks likely to change; tax treatment for LTCG may be revised

Firstpost  

Among the Budget proposals being considered for the Union Budget is that the long term capital gains tax will be fixed at 24 months or two years uniformly for all asset classes In a major move, the government is likely to stipulate a uniform framework for all asset classes—equity, property and gold—for computation of capital gains. Long term 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 …

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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