Multiply tax savings via multiple tax exemptions

Smart thinking can help maximise tax savings through investment in residential properties

- JIGAR MUKESH PATEL

LTCG exemption for investment in residential house

Section 54 of the Income-tax Act grants exemption for long term capital gains (LTCG) arising from the transfer of a residential house. Similar exemption is prescribed under Section 54F in respect of LTCG arising on transfer of other capital assets. The time period prescribed under both the sections in respect of purchase is within one year before or 2 years after the date of transfer and in case of construction within 3 years from the date of transfer. Response to a few interesting readers’ queries provide valuable insight into some useful tax saving tips for capital gains.

Investment in one house out of capital gains of multiple years?