Deduction U/s 54. (Deduction under Capital Gain)

 Deduction under Capital Gain

Deduction U/s 54

Deduction in respect for purchase of new residential house.

Deduction allowed from Long term capital gain on sale of a residential house.

Condition for deduction-: A new residential house must be constructed with in 3 year from the date of transfer. In case purchase of new house with in 1 year before or within 2 Year from date transfer of house property.

Amount of Deduction-:

• Deposit Scheme-: Amount of capital must be deposit under Capital gain deposit scheme 1988with in nationalized band before the due date of filling income tax return if assesses not invested in new house before the filling of income tax return.
• Unused Amount-: Unused amount after the time limit of amount under capital gain deposit scheme fully taxable in the year of duration complete.
• Forfeiture of Deduction-: deduction in respect of purchase of new house & construction of new house fully taxable, if new house sale within 3 year from the date of accusation.