Section 54 - Exemption on Capital Gains from House Property

Income Tax Income from Capital Gains
22

Hey @shan,

Section 54 can only be claimed in the case of LTCG from assets other than a residential house property. Whereas, section 54F can be claimed when you have capital gains from a residential property and reinvest the sale proceeds into another residential property.

However, in case of section 54, if the new asset is transferred within 3 years from the date of purchase or construction, then the exemption will be withdrawn.

Hope this helps!

1 Like
23

Whether LTCG exemption can be claimed on my intended sale of property bought in 2001

  1. Booking and allotment of under construction flat. Say Mar 2024
  2. Execution of sale deed ie registered doc. APR 2024
  3. Possession of the said UNDER CONSTRUCTION flat on completion. Mar 2026
24

Yes
Exemption can be claimed for Capital Gain utilised for construction of new property before one year or after two years from the date of tranafer.

25

Hey @Sri14,

Yes, you can claim the exemption.

26

What is defined as Purchase of property

  1. Allotment letter on booking with a nominal advance
  2. Agreement for sale of new property
  3. Registration date or
  4. Possession date post completion of full payment as per agreement.
27

Hello @Sri14

In my opinion, for the purpose of exemption, date of registration with the local authority is considered as date of purchase.

Thank you.