Dear Tax Payer,
It is not very clear that which asset was being sold. Is it Land or your self occupied house?
While the capital gain out of sale of land which is reinvested in a residential house property is covered under the provision of Section 54 of the Income-tax Act, 1961, capital gain out of sale of self occupied house which is reinvested in an another residential house property is covered under the provisions of Section 54F of the Income-tax Act, 1961.
Step to decide taxability
1. Decide whether Section 54/54F is applicable based on the above provision.
2. Determine whether the conditions laid down in those particular sections have been fulfilled.
3. Determine the tax liability.
Provisions are different for Section 54 and 54F. Hence, due to lack of clarity in the query, leaving the answer with procedure.
CA. Rajeev P T
Rajan Chakravarthy & Associates, Chennai
*****This Opinion is based on stated facts and the legal position as on date. The views expressed may not be relevant where there is any change in facts or law. This Opinion is not in the nature of an assurance that an alternative view or interpretation cannot emerge.