I have realized long term gains from sale of listed stocks / MF
and
also have:
-Short term losses from sale of listed stocks/MF
-Business loss from F& O
-Long term loss from sale of plot
-Sale of some other listed stock/ US stock
If so,
Is it allowed to invest only the realized long capital gains (without setoff with the various booked losses) in a residential property under section 54F and carry forward all the losses (listed as above) to the subsequent years.
another follow on question - for successfully claiming the 54F exemption, does the capital gains amount have to be deposited in some specific 54F account?
I remember reading something like that years ago and would appreciate a clarification. TIA.
IIRC, investing into a CGAS account is necessary ONLY if
one does not manage to re-invest the proceeds that resulted in LTCG
into purchasing/constructing a residential property before filing one’s ITR.
Hi if we sell a land after 2 yrs to avoid LTCG can we invest in NHAI or REC BONDS ? And max limit is 50 lakhs or govt has recently increased it to 10 crores?
Tax on LTCG is exempt if the proceeds from the sale of the long-term capital asset (land or building) are reinvested into qualifying bonds (eg. qualifying bonds of NHAI, REC)
within 6 months
subject to a limit of 50Lakhs
and one doesn’t sell, transfer, take any loan/advance on
the newly acquired assets (i.e. qualifying bonds) for a period of 5 years.
Previously (before 2015), there were instances where one has re-invested upto 1Crore in compliance with the conditions of Section 54EC (within 6months, but across 2 financial years) and successfully claimed LTCG exemption.
Subsequently, this was clarified in 2014-15 by amending the text in Section 54EC to limit the exemption to 50Lakhs, even if the re-investment within 6-months was spread across 2 consecutive financial years.
Provided further that the investment made by an assessee in the long-term specified asset, from capital gains arising from transfer of one or more original assets, during the financial year in which the original asset or assets are transferred and in the subsequent financial year does not exceed fifty lakh rupees.
The 10-crore limit on LTCG exemption is on Section 54 and Section 54F (which were previously uncapped), that allow LTCG exemption on proceeds reinvested into residential property subject to its corresponding bunch of restrictions.
