Exemptions From Capital Gains For Transfer Of Any Long Term Capital Asset Other Than A Residential House Property

ApplicabllityIndividual / HUF
Asset TransferredAny Long Term Capital Asset other than Residential House Property
Nature of the AssetLong Term Capital Asset
ConditionOn the date of transfer of the LTCA, the assessee should not own more than
one Residential House Property
New Asset to be acquiredResidential House Property
Amount to be invested in New AssetNet Consideration
Amount of Exemption(Long Term Capital Gain × Amount invested in Residential House)/Net Consideration
Time Limit for Investment(a) For Purchase: Within One Year before or Two Years after the date of transfer
(b) For Construction: Within Three Years after the date of transfer.
Unutllized Amount(a) The amount not utilized before the due date of filing return shall be kept in Capital Gain Account Scheme of a Nationalized Bank
(b) The amount should be utilized within the prescribed period                                                                                                 (c) Amount not utilized within the prescribed period shall be treated as LTCG of the previous year in which the prescribed period expires
Holding Period of New AssetThree Years from the date of acquisition or construction
Sale of New Asset within holding period(a) Short Term Capital Gain on New Asset shall be taxed separately.                                                                                       (b) Long Term Capital gain exempted u/s 54F shall be chargeable to tax as Long Term Capital Gain in the year of transfer.

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