Capital gains rollover for residential property: reinvestment in a replacement house defers immediate taxation when conditions met. Long-term capital gains on transfer of a residential house may be deferred if proceeds are used to purchase or construct a replacement residential house within prescribed time limits; excess gain over the new asset's cost is taxed while reinvested gains adjust the new asset's cost for future computations. Unused proceeds must be deposited in a specified institution by the return filing due date and, if not utilised within the specified period, shall be taxed as income when the reinvestment period expires, subject to permitted withdrawal under the notified scheme. Limited options and monetary caps apply to replacement of two houses and to amounts taken into account.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Capital gains rollover for residential property: reinvestment in a replacement house defers immediate taxation when conditions met.
Long-term capital gains on transfer of a residential house may be deferred if proceeds are used to purchase or construct a replacement residential house within prescribed time limits; excess gain over the new asset's cost is taxed while reinvested gains adjust the new asset's cost for future computations. Unused proceeds must be deposited in a specified institution by the return filing due date and, if not utilised within the specified period, shall be taxed as income when the reinvestment period expires, subject to permitted withdrawal under the notified scheme. Limited options and monetary caps apply to replacement of two houses and to amounts taken into account.
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