kandhan (other) 10 August 2010
In order to avoid capital gains tax, one has to buy a house within two years of sale or construct a house within three years of sale. If one buys two houses with proceeds of the sale, can he/she claim capital gains tax exemption for both the purchases?
In case construction of house could not be completed within three years, can on seek extension of time limit? If so, who is authorised to grant extension?
Shayan Khan (B.com) 10 August 2010
even if you buy / construct two house within the stipulated time then also exemption u/s 54 is available. however, in case the sale proceeds are not utilised within 6 months from the end of the month in which transfer took place then such proceeds shall be deposited in a Capital Gain Scheme Account in any Nationalized Bank, otherwise exemption will be denied.
kandhan (other) 11 August 2010
Sir thanks for the information. Could you also give your advice on extension of time limit in case of construction of house?
Member Strength 9,47,452 and growing..
© 2024 LAWyersclubindia.com. Let us grow stronger by mutual exchange of knowledge.
