Must know this before buying a house to save your money

Want to avoid paying long-term capital gains tax on the shares or previous home you sold to finance your new home? 🏡

Make use of the Capital Gains Account plan.

How though?

If you want to buy a property or build a house, you can use the Capital Gains Account Scheme 1988 to take advantage of the capital gain tax exemption provided by Sections 54 and 54F of the Income Tax Act.

Before the ITR filing deadline for that year, you must deposit your capital gains from the sale of capital assets into the Capital Gains Account.

What are sections 54 and 54F now?

According to Section 54 of the Income Tax Act, a person or HUF may be exempt from Long-Term Capital Tax.

if they use the proceeds from the sale of a residential property to pay for or build another residential home. Use this exemption carefully because it can only be used once throughout the seller’s lifetime. ☝🏻 Additionally, under Section 54F of the Income Tax Act, an individual or HUF is excluded from paying taxes on long-term capital gains from the sale of capital assets like shares, bonds, jewelry, etc. if they utilize the proceeds to purchase or build a home. You must not own more than one home in order to qualify (other than the one you are purchasing now). Under both sections, the building of a dwelling must be finished three years after the sale of the capital asset in question.

if they use the proceeds from the sale of a residential property to pay for or build another residential home. Use this exemption carefully because it can only be used once throughout the seller’s lifetime. ☝🏻 Additionally, under Section 54F of the Income Tax Act, an individual or HUF is excluded from paying taxes on long-term capital gains from the sale of capital assets like shares, bonds, jewelry, etc. if they utilize the proceeds to purchase or build a home. You must not own more than one home in order to qualify (other than the one you are purchasing now). Under both sections, the building of a dwelling must be finished three years after the sale of the capital asset in question.

Must know this before buying a house to save your money

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