Can I claim a long-term capital gains income tax exemption again?

I had benefited from an exemption under articles 54 and 54EC for the long term capital gains on the sale of my dwelling house in 2010. Can I again apply for an exemption for the sale of the current dwelling house purchased in 2010 or the exemption is only available once in a lifetime.

I think you’re talking about the provision in the Income Tax Act for a one-time exemption under section 54 for the investment of capital gains from the sale of a dwelling house in two dwelling houses provided that the amount of the long-term capital gain does not exceed 2 crores. Except for this benefit which is only available once in a lifetime, a taxpayer can claim exemption under Sections 54, 54F and 54EC a number of times as long as they meet the prescribed conditions.

To benefit from the exemption under section 54 on the sale of a dwelling house, you must have held the house for a period of more than 24 months from its acquisition and the indexed capital gains are invested to acquire another dwelling house within the prescribed period. To benefit from the exemption under Section 54F when selling an asset other than a dwelling house, you are required to invest the net sale consideration for the acquisition of a house. dwelling within the prescribed period and you must not own more than one dwelling at the date of sale of the asset. To claim an exemption under 54EC for long-term capital gains resulting from the sale of land or building, you must invest the index-linked long-term capital gains in capital gains bonds of specified entities within six months of the date of sale. of the asset.

I have a feeling you want to sell your existing dwelling house for which you applied for a Section 54 exemption in 2010. Since you have owned the new house for over three years, which is the ne of the conditions for avoiding the cancellation of the exemption requested previously, the question of the cancellation of the exemption requested in 2010 no longer arises today. You can again buy another dwelling house and/or invest in capital gains bonds and again claim exemption under Sections 54 and 54EC if you sell the house now.

Balwant Jain is a tax and investment expert and can be reached on [email protected] and @jainbalwant on Twitter.

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