I have invested the sale proceeds of a residential house in purchase of a house in the name of me and my wife. Am I eligible for the benefits?

• Related Articles

• I have sold my residential house and invested the entire proceeds in purchase of a new house from a builder for which an agreement to sale is registered. However, the builder has not given possession of the flat. Am I eligible for benefits?

  Yes. The key condition is utilization of sale proceeds for investment in a new residential house. If you could demonstrate that the delayed possession is beyond your control and you have paid substantial amounts to the builder, you are eligible for ...

• What is the time limit for purchase of a new residential house from the time of sale of original house?

  In order to be eligible for the benefit under this section the NEW house must be purchased within a period of ONE year BEFORE or TWO years AFTER the sale of original asset.

• 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 ...

• What is the time limit for construction of a new residential house from the time of sale of original house?

  In order to be eligible for the benefit under this section the NEW house must be constructed within a period of THREE years AFTER the sale of original asset.