Nitin Zimur 08 February 2022

Capital gain tax exemption for senior citizen homemaker ?

Dear Sir,

My mother is housewife and she has purchase plot in 1996 @ 40k in navi mumbai from Cidco. and then we constructed house with expenses' of around 1 Lac. So now we wanted to sell this house with estimated amt. of 45 Lac. My mother wanted to give 20 Lac to myself and 20 Lac to my elder brother and 5 Lac keeping with herself.

My question is she liable to pay the capital gain tax ? if yes, how much and what are the ways can we exempt it. ?

Please Guide

Nitin

Navi Mumbai

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1 Replies

Mahi Manchanda 07 July 2022

Hi,

The proceeds earned through the sale of an asset that has been held for more than 36 months is known as long-term capital gains.

Few basic exemptions concerning long term capital gains for the year 2021-2022 are

Resident individuals who are 60 years or above with an annual income of Rs. 3 lakh.
Resident individuals who are 80 years or above with an annual income of Rs. 5 Lakh
Hindu Undivided Families with an annual limit of 2.5 lakh.

Specifically Section 54 - Proceeds earned through the sale of a residential housing property. Capital gains accrued through the sale of a housing property used for residential purpose comes under capital gains exemption.

The assesse in questionis an individual or a Hindu Unidvided Family
The residential property was held for over 36 months.
A new property was purchased 12 months before or 24 months after the property in question was sold.
A new property has been constructed within 36 months of the sale of the housing property in question.
Proceeds generated are less than the cost if the new property.

In my opinion, these sections could be relevant for you. If you feel these apply to you then you should be exempted from paying capital gains tax.

I hope this helps.

Have a good day.