Section - 54

[jasjit narang]

Section 54 query; Assessee has sold flat and has capital gain Rs. 40Laks, he is buying a property for Rs. 25 lakhs and buy amenities such as italian marble and modular kitchen of Rs. 15 lakhs. will it be allowed as exemption

AI Summary

Section 54 Exemption Applies to Home Purchase and Improvement Costs for Capital Gains Tax Relief A query was raised regarding the applicability of Section 54 of the Income Tax Act for an assessee who sold a flat, resulting in a capital gain of Rs. 40 lakhs. The assessee planned to purchase a property for Rs. 25 lakhs and spend Rs. 15 lakhs on amenities like Italian marble and a modular kitchen. The response clarified that both the purchase of the house and the improvements made at the time of purchase would meet the conditions for exemption under Section 54.