Capital Gain tax exemption

[Asked by Guest]

I have a residential house and a commercial property in my name for over 10 years. If I sell my commercial property and keep the capital gain in capital gain accoount for purchasing or construction of new house, am I entitled to claim tax exemption from capital gain?

[ANITA BHADRA]

Dear Sir

You are entitle to claim exemption :-

Section 54EC	Long-term capital gain arising on transfer of any capital asset.	Gain to be re-invested in bonds issued by National Highway Authority of India or by the Rural Electrification Corporation Limited.
​ Section 54EE	Long-term capital gain arising on transfer of any capital asset.	Gain to be re-invested in units of specified fund, as may be notified by Govt. to finance start-ups.

AI Summary

Capital gain tax exemption available when long-term gains are reinvested in prescribed bonds or specified startup funds.
Long-term capital gain on transfer of a capital asset is eligible for exemption if the gain is reinvested either in prescribed bonds issued by notified public entities or in units of a government notified fund established to finance start ups, subject to the conditions and timelines applicable to those reinvestment provisions.