What is deduction under section 54B?

What is deduction under section 54B?

Exemption under section 54B can be claimed in respect of capital gains arising on transfer of capital asset, being agricultural land (may be long-term or short-term). This benefit is available only to an individual or HUF. The land should be used for agricultural purpose for at least two years.

Who is eligible for 54EC?

Taxpayers or assessees who acquire capital gains can avail of tax deductions under Section 54EC of the Income Tax Act 1961. This section allows taxpayers to save on tax on any capital gains or profits that they might accrue following the transfer of one or more long-term or original capital assets.

What is Section 54EC of Income Tax Act?

Income Tax – Section 54EC of the Income Tax Act, 1961 provides exemption from long-term capital gains tax provided an assessee invests within six months after the sale of his property in long-term specified assets. The Finance Act 2007 limited such exemption to Rs 50 lakh in any financial year.

What is the limit for holding financial assets to be called short term capital assets?

36 months
Main provision provides that short-term capital asset means a capital asset held by an assessee for not more than 36 months immediately preceding the date of its transfer.

How is US 54EC exemption calculated?

1. The deduction u/s 54EC is restricted to only transfer of Land or building or both by Finance Act 2018….Section 54EC Deduction on Capital Gain Under Income Tax Act.

What are the exempted capital gains?

Capital gains exemption refers to the benefit offered by the Government to taxpayers, relaxing the need to pay tax on capital gains. When a taxpayer sells an asset (other than personal belongings and items of stock used in the business) for a profit, the need to pay capital gains tax arises.

How is US 54F exemption calculated?

Calculation of Exemption Under Section 54F The total capital gain would be exempted if 100% sale proceeds is invested in the residential property. If full capital gains is not invested, exemption shall be allowed proportionately.

What is the exemption limit for short-term capital gain?

The exemption limit is Rs. 2,50,000 for resident individual of the age below 60 years. The exemption limit is Rs. 2,50,000 for non-resident individual irrespective of the age of the individual.

Can I claim exemption us 54F for repayment of home loan?

The LTCG being used to repay the home loan is considered to be fulfilling the criteria set under Section 54 and Section 54F, and thus you are permitted to claim an exemption on the entire LTCG amount.

What is exemption u/s 54F?

Section 54F of the Income Tax Act, 1961 is a section that allows tax exemption on the long term capital gains earned from selling a capital asset, other than a house property. So, if you sell a capital asset like shares, bonds, jewellery, gold, etc.

Can we claim basic exemption on capital gains?

Adjustment of Long-term Capital Gain (Exemption) The basic exemption limit applicable in case of an individual for the financial year 2019-20 is as follows: The exemption limit is Rs. 5,00,000 for resident individual of the age of 80 years or above.

What is the difference between section 54 and section 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.

Can we claim Section 54 and 54F simultaneously?

Section 54 and 54F are mutually exclusive and cannot be used at the same time, due to the nature of assets covered under these sections.

How is US 54 exemption calculated?

Amount of exemption Exemption under section 54 will be lower of following : Amount of capital gains arising on transfer of residential house; or. Amount invested in purchase/construction of new residential house property [including the amount deposited in Capital Gains Deposit Account Scheme (discussed later)].