Question ID :
40913
LONG TERM CAPITAL GAIN
X AN INDIVIDUAL SOLD THE FLAT ON NOV 2019, AND EARNED A CPAITAL GAIN OF RS 20 L. HE ALREADY POSSES A HOUSE ALONG WITH HIS SON. NOW MY QUERY IS WHETHER HE CAN PURCHASE ANOTHER HOUSE BY INVESTING FLAT CAPITAL GAIN OF RS 20 L AND THEREBY CAN SAVE CAPITAL GAIN. WHAT WILL BE THE TIME LIMIT OF INVESTMENT IN 54EC BOND CONSIDERING SALE AGREEMENT ON 01.11.20, AND WHETHER HE CAN INVEST THE PROCEEDS IN ANY CAPITAL GAIN SCHEME ACCOUNT TO BE OPENED IN ANY NATIONALISED BANK FOR USE IN PURCHASE OF ANOTHER RESIDENTIAL UNIT, BUT AS ON DATE HE IS HAVING A HOUSE JOINTLY OWNED WITH HIS SON.
Posted by
pradeep kumar agrawal
on
Dec 05, 2020
Filed Under
Capital Gains
As per the amendment, benefit of deduction under section 54 can be claimed for two residential houses owned by the assessee. So here the assessee can purchase another residential house and claim exemption under section 54. Time limit for investment under section 54EC is six months from date of transfer. He can invest sale proceeds in capital gain account scheme also.
Posted by
CA. chunauti dholakia on
Dec 07, 2020