1. I sold a residential property for 36 lakh in dec 2018 and purchased new residential house property for 38 lakh in jan 2020. i am claiming relief under section 54 . Now is there a possibility that i could sell my new property within year 2020 if yes then how

    • Since the holding period of the property is less than 3 years, the gain on the property would be short-term capital gain.
      In your case, no relief under section 54 would be available. The complete capital gain amount will be added to your income and you will be taxed as per the income tax slab you will fall into.

  2. What if I have one residential plot and one residential flat at the time of claiming exemption u/s 54 F.
    Can I claim exemption u/s 54F after sale of commercial shop and invested in residential house.

  3. I have purchased an industrial property from upsidc in yr.1993.inthe name of partnership firm. Now I have sold it worth rs.1.27 crores. How can i prewent capitalgain tax

  4. under section 54 can the assesse to save LTCG buy a property owned by his wife or relative who is a seperate individual assessee

    • First you have to appoint a valuer for ascertaining the fair market value of the property as on 1st April 2001. This should be the cost of acquisition, which is to be indexed by taking the CII of the year of sale (289, if to be sold in FY 2019-20) with that of 2001 (100) to arrive at the Indexed Cost of Acquisition.
      The sale consideration would have to be deducted from the indexed cost, so calculated to arrive at the capital gain.
      The tax rate is 20% on the gain amount (if any) not the total sale consideration.

      But do remember, if your spouse does not have any income then as per tax rules the gains are to be clubbed in your income and accordingly the tax liability would be decided.

      Please consult a tax expert for the detailed calculation.

    • Sir, proceeds from the sale of residential property should be invested in another residential property or in Capital Gain Bonds u/s 54EC to avoid capital gains tax.

  5. I got home as property from my late mother. Mother constructed home in before 2010.
    1. घर sale करने पर capital tax long term में consider होगा?
    2. Sale की पूरी amount as benefit consider होगी? पूरी amount invest करनी होगी?
    3. Tax कितने % देना पड़ेगा?
    4. Tax exemption के लिए कितनी बार invest कर सकता हूँ
    5. मेरे लिए best section कौन सा होगा section 54, 54F or 54 EC?

    • 1. Yes, the gains on sale of this house property would be considered Long-term Capital Gains.
      2. The sale proceeds would be taxable under the capital gains taxation. However, you may save taxes by investing the gain amount in any other residential property (section 54) or Capital gain bonds (section 54 EC).
      3. Tax rate on Long-term capital gains on property is 20%, with indexation benefit. To know the indexed cost, we have to first know the fair market value of the property as on 1st April 2001, if originally purchased by your mother, before 2001 and index the same as: Fair value*CII of the year of sale/100.
      If purchased after this date, then indexation would be:cost at which the property is purchased+cost of improvements (if any)*CII of the year of sale/CII of the year of purchase.
      The difference would be the capital gains, on which the tax rate would be applicable.
      4. You can buy the new residential property in next 2 years, before 1 year, or construct a new residential house in next 3 years from the date of sale of existing property.
      You may also open Capital Gains Deposit Account and deposit the gain amount before the due date of filing of income tax return for the financial year in which you would book your gains if you need some time to buy the new property.
      The other option would be to invest the gain amount in Capital Gain Bonds, upto Rs. 50 lakhs, per financial year, within the next 6 months from date of sale.
      5. Since the property, you are going to sell is a residential property, Section 54 F would not be applicable.

      • Thanks a lot sir. One more question, let’s assume deal done with one crore. Buyer says I would pay 30 lacs with Cheque (white) and balance 70 lacs in cash (black). How to adjust to that cash?

      • Thanks a lot sir. One more question, let’s assume deal done with one crore. Buyer says I would pay 30 lacs with Cheque (white) and balance 70 lacs in cash (black). How to adjust to that cash? Please respond

  6. Sold a commercial property for Rs. 46 lakhs on 20th March 2020 earlier purchased in 1978. The indexed cost of which in this year is Rs44 lakhs. Kindly let me know the options for me.

    • Since it is a commercial property, you have to invest the complete sale proceeds in a residential property or in capital gain bonds to save tax.
      If you don’t invest complete proceeds then you will get an exemption on a prorate basis, with the calculation as: Amount invested*Long term Capital gains/Net consideration


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