Capital gains exemption for reinvestment in residential house when proceeds are applied within prescribed periods. Non chargeability of capital gains applies when an individual or HUF transfers a long term capital asset other than a residential house and purchases or constructs a residential house in India within prescribed periods; gains are exempt to the extent the cost of the new house bears to the net consideration, or wholly exempt if the new house cost equals or exceeds net consideration. Unutilised gains must be deposited in a specified bank by the return filing due date and, if not applied within the allowed period, the exempt portion is restored to tax by a statutory formula; additional residential houses with taxable house property income and monetary ceilings limit the exemption.
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 exemption for reinvestment in residential house when proceeds are applied within prescribed periods.
Non chargeability of capital gains applies when an individual or HUF transfers a long term capital asset other than a residential house and purchases or constructs a residential house in India within prescribed periods; gains are exempt to the extent the cost of the new house bears to the net consideration, or wholly exempt if the new house cost equals or exceeds net consideration. Unutilised gains must be deposited in a specified bank by the return filing due date and, if not applied within the allowed period, the exempt portion is restored to tax by a statutory formula; additional residential houses with taxable house property income and monetary ceilings limit the exemption.
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