income tax section 54

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  1. I purchased a new property for 37 lakhs on febraury 2014 and sold old another property for 70 lakhs on july 2014 ,now i am constructing house in new property for construction cost of 40 lakhs. Can i avail tax exemptions of capital gain( for selling old asset) for both purchasing new asset 37 lakhs and house construction cost 40 lakhs. Please leave me reply.
     
  2. rudrabose

    rudrabose Active Member

    Assuming that the Asset sold by you was a Long Term Capital Asset, i.e. it was held by you for more than 3 years - Exemption would be available for purchase and construction of a New House.

    Therefore, Capital Gains Tax Exemption in your case is allowed.
     
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  4. Thank you sir . Before selling old asset we purchased a new plot and then started construction using capital gain obtained from transfer (sold)of old asset . Can we avail exemption for both purchase and construction cost of new asset?
     
  5. rudrabose

    rudrabose Active Member

    If the new property was purchased less than 1 year ago from the date on which the old property was sold - exemption would be allowed.
     
    avinash gopalakrishna likes this.
  6. Sir if person "A" sold a property for 50 lakhs and transfers the amount to his two sons "X and Y" equally (say 25 lakhs each). Then X purchase an plot for 25 lakhs and Y purchased an house for 30 lakhs . Will person A eligible for income tax exemptions ?
     
  7. rudrabose

    rudrabose Active Member

    No, the exemption wont be available in this case.

    The new property should be purchased in the name of the same person who has sold the property.
     
    avinash gopalakrishna likes this.
  8. Sir if a person purchased property in 1986 for 45000 rupees and got registered in subregister office , for some reasons he couldnot get sale deed . In 2013 he applied for saledeed and obtained , now in 2014 he sold his property for 1 crore . Whether that property considered as long term or short term capital asset?
    Is he eligible for tax exemptions.
     
  9. Sir if a person purchased property in 1986 for 45000 rupees and got registered in subregister office , for some reasons he couldnot get sale deed . In 2013 he applied for saledeed and obtained , now in 2014 he sold his property for 1 crore . Whether that property considered as long term or short term capital asset?
    Is he eligible for tax exemptions.
     
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