sir,
i sold a property (house) this month i.e. Jan-22 and gained an amount as long term capital gain.
please inform sir, how much time do i have, as per IT Act, to materilise the LTCG amount in order to purchase a new property.
regards,
poly ghosh
Hi,
Section 54 of the Income-tax Act, 1961 gives relief to a taxpayer, being an individual or a HUF, to claim exemption on capital gains incurred incurred from sale of a residential house. The gains made can be exempted from tax if the gains are invested in the purchase of another house property.
The time period within whcih such an investment must be made is within 1 year before the date of transfer or two years after the date of transfer of the old house and should the taxpayer consider constructing a residential, the amount will have to be invested within 3 years from date of transfer.
Best regards,
Megha
