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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.
Aug 7, 2018 · 1.) For Claiming Exemption, Assessee Should make Investment before Due Date of Filing of Return of Income. 2.) If the Assessee Fails to do so, Amount should be deposited in Capital gain Accounts Scheme before due date of return of Income to Claim the Exemption. 3.)
Apr 3, 2024 · Sections 54, 54B, 54D, 54EC, 54F, 54G, and 54GA offer various benefits to individuals and entities. This article delves into the specifics of each section, including eligible assets, time limits for acquisition, exemption amounts, lock-in periods, and applicable deposit schemes.
Jun 28, 2024 · Under Section 54 of the Income Tax Act, an individual or HUF selling a residential house property can claim exemption from such capital gains if they invest the proceeds in the acquisition, i.e., purchase or construction, of another residential property.
Jul 4, 2024 · QUANTUM OF EXEMPTION. If the cost of new residential house >= long term capital gains, entire gains is exempt. if cost is < long term capital gains, then upto to the extent of cost of new residential house is exempt. With effect from 2024-25, the Finance Act 2023 has restricted the maximum exemption amount under section 54to ₹10 crore.
Quantum of Deduction under Section 54. Capital Gains shall be exempt to the extent it is invested in the purchase and/or construction of another house i.e. If the Capital Gains amount is equal to or less than the cost of the new house, then the entire capital gain shall be exempt.
Jun 26, 2024 · Updated on: Jun 26th, 2024. |. 9 min read. The sale of capital assets may lead to capital gain, which may attract tax under the Income Tax Act. To save tax on these capital gains, a few capital gains exemptions/deductions are available. Thus, one needs to plan benefits, considering all the relief available under the law.
Oct 19, 2023 · A taxpayer can claim capital gain exemption on the sale of a house property under Section 54 if they satisfy all the below conditions: The taxpayer should be an Individual (including NRI) or HUF. The benefit of exemption u/s 54 is not available to the company, LLP, or Firm.
Apr 11, 2023 · As per Section 54 of Income Tax Act, an individual or a Hindu Undivided Family (HUF) can avail tax exemptions based on the capital gains on selling immovable property only when used for investing in real estate assets.
What Is Section 54 of the Income Tax Act? The process of selling or transferring a capital asset like property comes with taxable capital gains. However, the Government makes it easier for the citizens under Section 54 of the Income Tax Act.
