Who is eligible for availing exemption u/s 54?

Exemption under section 54 can be claimed in respect of capital gains arising on transfer of capital asset, being long-term residential house property. This benefit is available only to an individual or HUF. The benefit can be claimed by purchasing or by constructing a residential house.

What is Section 54 income tax?

Under Section 54 the IncomeTax Act, an individual or HUF selling a residential property can avail tax exemptions from Capital Gains if the capital gains are invested in purchase or construction of residential property. Income from such a house should be chargeable as Income from House Property.

What is the maximum exemption for 54 EC?

Rs. 50,00,000
The maximum limit for investing in 54EC bonds is Rs. 50,00,000. The eligible bonds under Section 54EC are REC (Rural Electrification Corporation Ltd), PFC (Power Finance Corporation Ltd) and NHAI (National Highways Authority of India) and IRFC (Indian Railways Finance Corporation Limited).

What are the deduction under section 54?

Exemption under section 54 can be claimed in respect of capital gains arising on transfer of capital asset, being long-term residential house property. To claim exemption under section 54, another house should be purchased within a period of one year before or two years after the date of transfer of house.

What is capital gain what are its types What capital gain are exempted u/s 54?

Section 54 of the income tax act states exemption on long term capital gains for the sale of a residential property. Entire capital gains needs to be invested to claim full exemption. When entire capital gains is not invested the leftover amount is charged for taxation as long term capital gains.

How can I buy 54 EC bonds?

How to invest in 54 EC capital gain tax exemption bonds online in…

Our Answer: 54EC bonds are specifically meant for investors earning long-term capital gains.
Investment via broker.
Click the “Fill a New Form online” button for the bond issuer you prefer.
Click the “upload Application/KYC documents” button.

What capital gains are exempted u/s 54?

What does section 54 of the Income Tax Act allow?

The Section 54 of the Income Tax Act allows the lower of the two as exemption amount for a taxpayer: Investment made for constructing or purchasing a new residential property. The balance amount (if any) will be taxable as per the income tax act.

What’s the difference between capital gains exemption and Section 54?

There is a major difference between both the exemptions of the tax. Section 54 of the income tax act states exemption on long term capital gains for the sale of a residential property. Entire capital gains needs to be invested to claim full exemption.

What are the conditions for exemption under Section 54?

Conditions for availing the exemption under section 54 1 The exemption benefit under section 54 is available only to an individual or a Hindu Undivided Family (HUF). 2 The capital asset transferred should be a ‘ Residential House Property’. 3 The capital asset transferred should be a ‘Long term capital asset’.

Can a house be purchased outside of India under Section 54?

Exemption can be claimed only in respect of one residential house property purchased/constructed in India. If more than one house is purchased or constructed, then exemption under section 54 will be available in respect of one house only. No exemption can be claimed in respect of house purchased outside India.

Who is eligible for availing exemption u/s 54? Exemption under section 54 can be claimed in respect of capital gains arising on transfer of capital asset, being long-term residential house property. This benefit is available only to an individual or HUF. The benefit can be claimed by purchasing or by constructing a residential house. What…