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Jun 26, 2024 · Capital gains from asset sales attract taxes, but exemptions can reduce tax liability. Determining short/long-term capital gains is crucial due to varying tax rates. Various exemptions available, such as on sale of residential property or agricultural land.
Oct 27, 2023 · Exemptions from Capital Gains. The Income-tax Act allows exemption from capital gains tax if the amount of capital gains or sale consideration, as the case may be, is further invested in specified new assets. These exemptions are provided as per the following sections:
Jul 1, 2024 · Exemption on Short-term Capital Gain. STCG exemptions are provided under Section 54B and Section 54D of the Income Tax Act, allowing taxpayers to reduce their tax liability on short-term capital gains.
Jul 4, 2024 · Under Section 54 of the Income Tax Act, an individual or HUF selling a residential property can avail tax exemptions from Capital Gains if the capital gains are invested in purchase or construction of residential property.
Apr 3, 2024 · Understanding exemptions under capital gains is crucial for taxpayers to optimize tax liabilities. Sections 54, 54B, 54D, 54EC, 54F, 54G, and 54GA offer various benefits to individuals and entities.
Jun 8, 2020 · In case of Section 54, assessee can get an exemption from long term capital gains from the sale of house property by investing in up to two house properties. However, the capital gains on the sale of house property must not exceed Rs 2 crores. 6.
Here is a list of a few basic exemptions concerning long-term capital gains for the year 2021-2022 –. Resident individuals who are below 60 years with an annual income of Rs. 2.5 Lakh. Resident individuals who are 60 years or above with an annual income of Rs. 3 Lakh.
According to the Income Tax Act, assets received as gifts or by inheritance are exempted in the calculation of income for an individual. Buildings, lands, houses, vehicles, Mutual Funds, and jewelry are a few examples of capital assets. Also, the rights of management or legal rights over any company can be considered as capital assets.
Feb 29, 2024 · The Income Tax Department provides capital gain tax exemptions to taxpayers through section 54. This section allows taxpayers to potentially avoid paying taxes on profits earned from the sale of certain assets if they reinvest in eligible assets. The section lists various assets that are eligible for reinvestment.
Jun 26, 2023 · Exemptions under Capital Gains refer to specific transactions or investments that are not subject to tax on the gains realized. Individuals can avail of various exemptions under capital gains tax to protect their income from the sale of capital assets and ultimately reduce their overall tax liability.
