How should I file my taxes for the year in which I have sold the property, if I have two more years to invest the proceeds for claiming exemption u/s54?
The
capital gains arising from the sale of property is taxable in the year that it
was sold. Hence you would have to take the decision of investing in the new
property before you file taxes for that assessment year, else the capital gain
would become taxable. To avoid this situation, the I-T Act has provided for a
deposit under the Capital Gains Account Scheme.
Related Articles
What is the time limit for investing the capital gains on sold residential property in a new property?
For claiming exemption u/s54, the capital gains arising from sale of old property must be invested in: Purchase of another residential property within one year before or two years after the transfer of the old property. Construction on a residential ...
How would I calculate the exemption u/s 54F in case only a part of the sales proceeds, and not the whole amount is invested in the residential property?
In this case, the exemption on capital gain will be allowed in proportion to the sales proceeds invested in residential property, i.e. Exemption Amt = Capital gain × (Amount invested/Net Sale consideration).
Is there any relief provided for capital gains arising from sale of any long-term asset which is not a residential property?
Yes, u/s 54F, any gain arising from sale of long-term asset can be tax exempted if the entire sales proceeds are invested in · Purchase of one residential property within one year before or two years after the date of transfer of the asset, or ...
Can exemption can be claimed u/s 54 and 54F when capital gains from transfer of multiple properties are invested in a single residential property?
If other conditions as regards time limit etc. are fulfilled, exemption under section 54 is allowable where capital gains arising from sale of two residential houses are invested in a single residential house.
Can I claim exemption u/s 54EC & 54EE along with section 54?
Yes. You can claim exemption under all these sections together, but you have to exhaust exemption under section 54 first, since it doesn’t have a ceiling limit which is present in the other two.