Is there a ceiling limit on the amount of exemption to be claimed under section 54EC of the Act?

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• 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.

• 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.

• My capital gain is worked out at an amount more than actual profit I earned in the sale of my asset because of application of section 50C of the Income tax Act. Am I eligible for exemption of such deemed capital gains in entirety?

  Yes. Where capital gain is assessed on notional basis under section 50C, whatever amount is invested in new residential house within prescribed period under section 54F would get benefit of deduction irrespective of fact that funds from other sources ...

• Has the exemption of amount received under VRS been extended to central and state government employees?

  Yes. The exemption of amount received under VRS is extended to all employees of the Central Government w.e.f. Assessment Year 2002-2003 and for all State Government employees w.e.f. Assessment Year 2001-2002.

• Why is there an exemption provided for taxation on Long term Capital Assets tax?

  When a long-term capital asset like a house property or long-term bonds are sold, the gains are usually very large and are taxed at 20%. Thus, the tax liability on this profit also turns out to be a substantial amount as a long-term capital gains ...