Hi,
CG exemption rule is applicable in our case 54 because Long term capital gains arising from a residential property
The capital gains must be computed and IT returns filed for AY18-19. It should be considered from date of sale agreement
No, you can get exemption only for amount invested in one residential property.
Section 54:
This is the section for availing tax benefit on long term capital gains arising from a residential property. Under this section if a residential house is sold after three years of purchase then one can avail tax exemptions on the gains by investing them in following options –
A new residential property either bought within two years or constructed within three years from the date of transfer of existing property. In the case of buying a new property, the exemption is available even if it is bought within one year before the date of transfer.
There might be a situation when you would not have decided on a new property but do not want to lock in the money in the bonds. In such instances, the money has to be deposited in a Capital Gains Account Scheme.
The entire capital gains will be exempted where the amount of investment in new property is equal or greater than the capital gains earned.
One of the larger benefits of Section 54 is that one can hold a number of properties as on the date of transfer and still claim exemption on the gains.
Thanks & Regards,
Payal Chhajed