Section 54 F: Transfer Of Any Capital Asset (Other Than A Residential House) But Purchase Are Construction Of A Residential House.
Asset to be transferred: Any capital asset (other than a residential house property)
Asset on which capital gain to be invested: One residential house.
1. ELIGIBLE ASSESSEE
- Individual or HUF
2. CONDITIONS
- The asset transferred should be a long term capital asset.
- A residential house property should be purchased in India within 1 year before or 2 years after the date of transfer (3 years from date of transfer incase of construction).
- The exemption is not available if the assesse,
- Owns more than one residential house as on the date of transfer (other than the new residential house).
- Purchases any residential house (other than the new residential house) within a period of 1 year after the date of transfer of original asset.
- Constructs any residential house (other than the new residential house) within a period of 3 years after the date of transfer of original asset.
3. AMOUNT OF EXEMPTION
- If entire net consideration is invested, entire capital gain is exempt from tax.
- If the cost of new asset is less than net sale consideration of the transferred asset,
Capital Gain Exempted =
4. HOLDING PERIOD OF NEW ASSET
- The new residential house property should not be transferred within a period of 3 years from the date of purchase or construction.
5. WITHDRAWAL OF EXEMPTION
- If transferred within three years, the capital gain exempted would be taxable as long-term capital gain in the year of transfer.
6. UNUTILISED CAPITAL GAIN (Capital Gain Account Scheme):
- Unutilised capital gain can be claimed as exemption by depositing the same in the capital gain deposit A/c scheme with any nationalised bank before the due date of filing return of income.
- If the amount in the capital gain deposit A/c scheme remains unutilised for a period of two years (in case of purchase) or 3 years (in case of construction), the unutilised amount will be taxable as LTCG in the PY in which the 2 years or 3 years as the case maybe expires.