Many of us promote stocks of thousands and thousands of rupees by way of promoting stocks. That is beneath the scope of Beneficial properties tax. Sujit Pandey, who lives in Noida, had a protracted -term capital features from promoting stocks remaining yr. He needs to shop for a residential belongings. On the other hand, they have already got a space. He needs to understand that he can use this gense to shop for an exgamption on it to shop for a space? Moneycontrol requested this query to Mumbai’s tax skilled Balwant Jain.
Permission to say exhalation beneath phase 54F
Jain mentioned that one can declare an exhalation at the lengthy -term capital features from switch of an asset (aside from for residential space) beneath the person or HUF phase 54F. The situation is that he should use the capital gence inside the stipulated time to shop for a space or construct a space. If somebody needs to shop for a ready-to-move-in space, then he’ll have to take action inside of two years of the cellular date. If he needs to construct a space himself or needs to shop for an under-construction space, then it is crucial to do it inside of 3 years of the development cellular. If the home is bought a yr sooner than the cellular, the exhalation will also be claimed.
10 crore prohibit for exhalation
He mentioned {that a} prohibit of Rs 10 crore is mounted for this exgamption. Because of this the exgamption declare can’t be claimed beneath phase 54F on funding of greater than 10 lakhs. The quantity on which the exgamption is to be extended family isn’t utilized by the remaining date to document source of revenue tax returns (15 September this yr), then it’s going to should be deposited within the checking account opened beneath the ‘Capital Gens Account Scheme’. With this you’re going to be entitled to exhalation. The deposit quantity in a checking account can be utilized to shop for a space inside the cut-off date.
There will have to be no multiple space within the title of taxpayer
Jain mentioned that it is crucial to remember the fact that the exgamption beneath Segment 54F will also be claimed best when there shall be no multiple space within the title of the taxpayer (aside from what you will purchase). Since Pandey already has just one space, he can declare an exhalation at the capital features beneath phase 54F.