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So, Capital gains from sale of assets like shares, mutual funds, jewelry etc. is taxable.
But if you reinvest the sale proceeds in buying or building a house, then under section 54F, capital gains can be exempted.
This is day 7 of 10 smart tips for your Mehnat ki Kamai!
1.To get full exemption, invest all sale proceeds. If not, exemption is partial. Formula: Exemption = (Cost of new house × Capital Gains) / Sale Receipts.
2.To claim the exemption, you must buy a house within a year before or two years after selling the asset. If constructing, finish within three years from the sale.
3.New house should be held for at least three years.
4.The new residential house should be in India.
You can’t claim the deduction if.
1.You already own more than one house (excluding the new one) when you sell the original asset.
2.You buy another house (not the new one) within a year of selling the original asset.
3.You build another house (not the new one) within three years of selling the original asset.
Disclaimer: These are just general guidelines; tax rules are complex with a lot of terms and conditions and individual situations may vary. Consult your CA for personalized advice.
[Anushka Rathod, finance, taxes, rich, home, money, investment] | Posted on 22/Jun/2024 17:32:42
