Section 54 of the Income Tax Act allows individuals and Hindu Undivided Families (HUFs) to claim exemption from long-term capital gains tax on the sale of a residential property, provided the gains are reinvested in another residential house within specified time limits. Ask Wallet Wise query decodes eligibility for this exemption regarding the nature, number of the assets, and timelines for purchase or construction.

Moneycontrol’s Ask Wallet Wise initiative offers expert advice on matters of personal finance and money. You can email your queries to askwalletwise@nw18.com, and we will try and get a top financial expert to address your queries .

A house was constructed with a stilt plus four independent floors. Two of these floors were sold to two individuals. The sale proceeds from both

See Full Page