@Sakshi_Shah1 can you help ?
Hey @Gilbert
On the sale of a residential house property that is a Long Term Capital Asset, you can claim capital gains exemption under Section 54 of the Income Tax Act. You can read about the detailed conditions here - Section 54 of the Income Tax Act - Capital Gains Exemption
If you need help of a tax expert, you can opt for our service ‘Ask an Expert’ where you get to connect with a tax expert for 30 minutes on a meeting to resolve your tax queries.
Here is the link - Ask an Expert
On the sale of a residential house property that is a Long Term Capital Asset, you can claim capital gains exemption under Section 54 of the Income Tax Act. This doesn’t answer my question. Can the LTCG of residential property be set off against any of the alternatives available on Sec54, i.e. Sec54,54B, 54EC,54EE,54F? or does it have to be against a particular section itself.
Buying a plan for one question, not sure if it would be worth it.
Anyways thanks for your help.
Hey @Gilbert
On the sale of a residential house property which is a Long Term Capital Asset, you can claim an exemption under either of the following sections:
Section 54F - Exemption on sale of a long term capital asset being a residential house property if you invest into another residential house property
Section 54EC - Exemption on sale of a long term capital asset being land or building if you invest into bonds of NHAI or REC
Section 54EE - Exemption on sale of any long term capital asset if you invest into units of a fund notified by the central govt to finance startups
The conditions mentioned under the section must be fulfilled to claim the exemption. You can read more about it here.
commercial or industrial property is not allowed ?
hw to save tax on the capital gain on the sale of commercial/industrial property ?
sale gain on the sale of commercial/industrial property can only be set off via buy of commercial/industrial property ?
can STCG and LTCG , on sale of property both , can be set off as per section 54F , 54 ec ; 54ee ?
Hello @HIREiN
The exemptions of Capital Gains are available based on the nature of capital asset sold and the asset invested into. The answer above pertains to user’s query on sale of a residential house property where he can claim deduction under Section 54F and also other sections with a generic condition of any long term capital asset sold.
You can read more about capital gains exemptions here - Capital Gain Exemption
This article comprises of detailed explanation with nature of asset sold and the nature of asset to be invested into alongwith the mandatory conditions to be fulfilled.
What amount is exempt on gains from sale of my agricultural land??
Hey @Joe_Fernandes
Exemption under section 54B of the Income Tax Act is available on Capital Gains on sale of agricultural land and purchase of new agricultural land.
The amount of Exemption will be least of the following -
- The Cost of new Agricultural land,
- The Capital Gains on the sale of Agricultural land.
Hope this helps!
If the aggregate income is less than 5Lakhs and when we add the STCG/LTCG the net income goes above the 5 Lakh limit for tax rebate.
In this scenario how the rebate is applicable
Example:
Aggregate income - 4.5L
STCG- 1 L
Total Taxable income- 5.5L
Do I need to pay tax for 4.5L and 15% STCG or Only 15% STCG , Rebate applicable for 4.5L
If your Net Taxable income is below 5 lakhs you can avail rebate under section 87A.
Net Taxable is income = Income from all sources(inclusive of Capital Gains) - Deductions
Since your Net Taxable income is 5.5 lakhs you cannot avail rebate under section 87A.
Therefore, you’ll have to pay tax on 4.5 lakhs at slab rate and 15% on STCG.
Tax Liability = 5% on 2 lakh(4.5-2.5) + 15% on 1 lakh = INR 25000
You can use this tool provided by the Tax Department to calculate your tax liability.
Hope this helps 
money received form wife as gift ; and/or ; money received from wife as loan :
are these to be added to the gross total income ?
@Sakshi_Shah1 can you help ?
Hi @HIREiN
Gift received from relatives is exempt from tax. Definition of relative includes spouse too. Thus, gift from wife should be reported as exempt income in the ITR. It would not be included in the gross total income and tax would not be calculated on such income.
Loan received from wife is not an income and would not be a part of gross total income. However, if such money is used for business, it should be reported as an unsecured loan in your balance sheet if you need to file ITR-3.
Read more - Tax on Gift: Rules and Exemptions As per Income Tax Act in India
Do we have to provide the details in ITR even if LTCG is less than 1 lakh?
Hey @Sofiyah_Valiante,
Long term capital gains below Rs. 1 lakh threshold has to be reported in order for the Income Tax Department to know that a specific amount of exemption has been claimed on LTCG from equity investments.
1.Should I pay taxes for the Profits which are still in the trading account of the broker and “wallets” of MF aggregators…and have not been transferred into my Bank account.
My logic is to reinvest the profits and transfer back into my bank account after a period of 5-7 years.
So in that 5-7 years , I am not realizing any profits(ie, nothing comes into bank account for me to spend,rather, money goes from my bank account (obtained via salary for which I have filed ITR-1) )
2.What do I do if there are losses for a FY under the same scenario.
(All happening in trading account and “wallets” of brokers and MF or Investing service providers)
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Thank you for your time
Hey @Aby_Math ,
For investor, capital gain taxes are levied when capital asset is transferred or sold. If you have sold or transferred the investments to actual buyer then capital gain would be applicable irrespective of the money credited into bank account or wallets. But, if only unrealised profit is incurred without transfer or sell the investment then capital gain taxes will trigger when you actually sell or transfer the investments.
The scenario will also remain same in case of losses.
For more insights, you can read below article:
I hope, it helps 
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Thank you Kaushal.You are a godsend. 