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On the other hand, the exemption is subject into the cash gain not exceeding Rs 2 crore. Also, the exemption is on the market only once during the life time of the vendor.
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To begin with, let's recognize which percentage of the income is taxable on sale from the residence. Could it be the complete quantity obtained on sale of assets?
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If the price of the new asset ordered is bigger when compared to the capital gains, then it is obvious that there will be no capital gains as your entire capital gains will be exempted. Nonetheless, if the new dwelling is offered within just three decades, then expense of The brand new household are going to be computed as follows:
As per the revenue tax act, for the purpose of funds gains, property are categorised into 2 styles with regards to the holding period of the asset:
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If the cost of the new residential residence is lessen than the entire sale sum, then the exemption is permitted proportionately. For that remaining amount of money, you'll be able to reinvest the money below Section 54EC inside of 6 months.