Planning to Sell your Residential Property, Know Tax Implications and Investment Opportunities

All you need to know about Tax Implications and Investment Opportunities

S-54 of Income Tax Act, 1961

Only for Individual/ HUF selling a residential property

Conditions:-

• Residential house must be LT Capital Asset (held for 2 years or more)
• Acquire 1 residential house IN INDIA within 1y before/ 2y after the date of transfer of old house or construct within 3y from the date of transfer of the old house.
• Recent amendments extend the benefit of exemption in respect of investment. Assessee can invest in 2 residential house properties if LTCG does not exceed Rs. 2 crores. (this option can be availed once in a lifetime)
• If assessee intends to, but is yet to purchase the new house property as the time limit of 2 years or 3 years has not yet expired, then he is required to deposit the amount of gains in the Capital gains account scheme (in any branch of public sector, bank) before the due date for filing income tax returns.
• If the amount is not utilized within the time limit, then it shall be treated as income of the PY in which 3 years expire.