Is the exemption valid in case of residential house purchased outside India?

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• 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).

• 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.

• I am an employee of a Multinational Corporation and working in India. However, my salary is paid outside India. Is such an income taxable in India?

  Salary accrues where the services are rendered even if it is paid outside India; Hence, the income received outside India against services rendered in India will be taxable in India. (Sec 15 & 9, Income Tax Act)

• Can I start the construction of a new residential house before I sell my existing house?

  In this case, you will not be eligible for exemption under section 54 of the Act.

• 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 ...