I had availed exemption beneath Section 54 and 54EC for long run capital beneficial properties on sale of my residential home in 2010. Can I once more declare exemption on the market of the current residential home purchased in 2010 or the exemption is on the market solely as soon as within the lifetime.
I feel you’re speaking concerning the provision of earnings tax legislation offering for one-time exemption beneath Section 54 for investing the capital beneficial properties arising on sale of 1 residential home in two residential home offered the quantity of long run capital achieve doesn’t exceed ₹2 crore. Except for this profit which is on the market solely as soon as within the lifetime a tax payer can declare exemption beneath Section 54, 54F and 54EC any variety of occasions so long as one satisfies the situations prescribed.
For availing exemption beneath Section 54 on sale of a residential home you could have held the home for a interval of greater than 24 months from its acquisition and the listed capital beneficial properties are invested for buying one other residential home inside prescribed interval. For availing exemption beneath Section 54F on sale an asset aside from a residential home, you’re required to take a position the online sale consideration for buying a residential home inside prescribed interval and you shouldn’t personal a couple of residential home on the date of sale of the asset. For claiming exemption beneath Section 54EC for long run capital beneficial properties arising on sale of a land or a constructing, you’re required to take a position the listed long run capital beneficial properties in capital beneficial properties bonds of specified entities inside a interval of six months from the date of sale of the asset.
I really feel you want to promote your present residential home on which you had claimed exemption beneath Section 54 within the yr 2010. Since you’ve got held the brand new home for greater than three years which is without doubt one of the situation for avoiding reversal of exemption claimed earlier, the query of reversal of exemption claimed in 2010 doesn’t come up now. You can once more purchase one other residential home and/or put money into capital beneficial properties bonds and declare exemption beneath Section 54 and54EC once more in case you promote the home now.
Balwant Jain is a tax and funding skilled and will be reached on [email protected] and @jainbalwant on Twitter.
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