Capital Gains
We all try different options to save our tax liability. One option available for tax-payers specially when it comes to buying/selling real-estate property is looking at available options under Capital Gains. Lets understand the meaning of Capital gains. The Capital Gains exemption?refers to the benefit offered by the Government to taxpayers, relaxing the need to pay tax on capital gains. When a taxpayer sells an asset (other than personal belongings and items of stock used in the business) for a profit, the need to pay capital gains tax arises. Different Sections under 54 gives relief to a taxpayer. The various Sections like 54B,54D,54EC,54F,54G,54GA,54GB gives relief to taxpayers.
Talking about one such Section- 54F- This section is applicable for Long Term Capital Gain made on ??sale of any long term assets other than residential house property( some examples are shares, gold, jewelry, bonds, etc.) eligible for Individual and HUF. The taxpayer has the option of reinvestment into buying or constructing?another house property. The time period for investment is 1 year before the sale or 2 years after the sale of the property. In case of construction of property, the time limit is 3 years.
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