Capital gain Exemption

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  1. Bigdada

    Bigdada New Member

    Here is my Query: I have a friend (us citizen) in India and wants sell his Cold Storage business and wants to re- invest the sales proceeds including capital gain to buy a hotel is USA. Can he get Capital Gain Exemption from India ? Can he get tax differed in USA by doing 1031 exchange if he identify Property within 45 days and close within 180 days of selling his Cold Storage? Does he need to open NRO account, park the money and when needed to close, he gets it?
  2. Sahil Oberoi

    Sahil Oberoi Member

    In this case, Section 54EC would be applicable.

    And exemption under Section 54EC can only be claimed if the amount is reinvested in a Residential House.

    A Hotel wont be considered as a Residential House and therefore the exemption cannot be claimed.
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