Exemption
from Capital
Gains on
Sale of
Residence
-
Capital
gains
arising
on
transfer
of a
residential
house,
comprising
buildings
or land
appurtenant
are
exempt
if the
amount
of
capital
gains is
utilized
in
acquiring
another
residential
house,
either
by
purchase
or by
construction.
The
exemption
cannot
be
claimed
for
vacant
land as
it is
not
categorized
as
`residential'
and no
income
accrues
from
there.
The
conditions
required to
be fulfilled
to claim
exemption
here are:
-
The
capital
asset
being
transferred
is a
residential
house,
including
self-occupied
house
- Income
from the
house is
chargeable
under
the head
- Income
from
house
property
- The
house is
a
long-term
asset
- The
tax
payer
purchases
or
constructs
a new
residential
house
within
the time
specified
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