I got a house on gift from my mother in 1976.I myself constructed a house in 1998 and using it as my residence. Now I want to sell house which I got on gift.I want to purchae a flat other than the house where I am living.Would i get capital gain benefit tax u/s 54F & sec 45
1 Answers
Yes, you can get tax exemption under section 54.
Please compute capital gain by considering indexation into account. Computation has to be done with fair market value in 1981-82 and all amount invested for renovation thereafter.
If purchase cost of new house, to be bought, is more or equal to the capital gain amount, there is no income tax. But new flat has to be bought within two years after sale of old flat.
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