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Various Exemptions available from Long Term Capital Gain

Most common and frequently used exemptions are given in Section 54, Section 54F and Section 54EC. Section 54 is about exemption from LTCGon sale of a house by investing in another house. Similarly section 54F is about exemption from LTCG on sale of any asset not being a residential house by investing in another house. However Section 54EC is about exemption from LTCG on sale of any capital asset by investing in specified bonds. 

Under Section 54 - By investing in a new house property:

Section 54 of the Income Tax Act provides exemption from Long Term Capital Gain on sale of a house if a new house property is purchased or constructed within one year before or two years after the sale of property.
Click here to read about Section 54 in detail

Under Section 54F - By investing in a new house property:

Section 54F of the Income Tax Act provides exemption from Long Term Capital Gain on sale of a capital asset not being a house if a new house property is purchased or constructed within one year before or two years after the sale of asset.
Click here to read about Section 54F in detail


Under Section 54EC - By investing in certain bonds:

Section 54EC provides for exemption from LTCG on sale of any asset if investment is made in the specified bonds. Investing the amount of LTCG within six months of transfer of the long term asset in the specified bonds provides for exemption from long term capital gain subject to specified limits.
Click here to read about Section 54EC in detail


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