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 option can be exercised by the taxpayer only once in his lifetime provided the amount of long-term capital gain does not exceed Rs. 2 crores.

What is section 54 of 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 Section 112A of Income Tax Act?

Section 112A provides for long-term capital gains tax on the sale of listed equity shares, equity-oriented mutual funds and business trust. The rate of long-term capital gains tax on these listed securities is 10% for gains exceeding the threshold of Rs 1 lakh.

What is the difference between section 54 and 54F?

Section 54 requires you to invest only the indexed long-term capital gains, whereas Section 54F is available if the net consideration of such assets is invested. Both these sections are available, if the investment is made for the purchase or construction of a residential house in India.

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

Capital Gains Exemption

Which of the following is eligible for availing exemption u/s 54 Mcq?

1. 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.

What is the difference between Section 112 and 112A?

No tax on gains from Mutual Funds. If Section 112 is applicable than Section 112A does not imply. Shares listed in the recognized Stock Exchange in the International Financial Service Center (IFSC) as Securities Transaction Tax (STT) are not charged on the transfer of such securities.

When does a capital gain become a long term capital gain?

Any capital asset held by the taxpayer for a period of more than 36 months immediately preceding the date of its transfer will be treated as long-term capital asset. 2) With effect from A.Y. 2018-19, period of holding to be considered as 24 months in instead of 36 months in case of immovable property being land or building or both.

When is long term capital gain available under section 1061?

When Section 1061 is applicable, long-term capital gain is available only where the disposed asset has been held for more than three years. Accordingly, proper tracking of the holding period attributable to the disposed asset is critical.

How is long term capital gain taxed under Section 112?

S. 112 (1) provides that any capital gain arising from a long term capital asset being the listed securities which are sold outside the stock exchange, then the long term capital gain shal be calculated as follows: Tax arrived @ 20% on such long term capital gain after indexation u/s 48

What was long term capital gain under Income Tax Act 1961?

The Article Discusses about Tax Treatment of Long Term Capital Gain arising from Transfer of Capial Assets under Income Tax Act, 1961.