Dr Dilip V Satbhai – Amendment to Taxability of Long-Term Capital Gain on Sale of House Property in 2023

**Title: 2023 Amendment to taxability of Long-Term Capital Gain on Sale of House Property 🏠**


[Transcript Source](link-to-transcript-source)

The Government of India recently announced the new budget, which includes significant changes to the income tax act of 1961. One of the major amendments pertains to the taxability of long-term capital gains on the sale of house property.

If a house is sold and it qualifies as a long-term capital asset (owned for a minimum of 24 months), the entire long-term capital gain is exempt if the amount is reinvested in buying a new house within a specific timeframe. This means that if you sell your house on April 1, 2023, the new house must be purchased by January 1, 2025, or constructed before January 1, 2026.

Under the new provisions, this particular house is exempt from income tax, subject to certain conditions. If the house is not purchased, a tax rate of 20% plus education cess and surcharges applies.

There are two options available for exemption in this category. First, you can invest up to 50 lakhs rupees in RES 54 REC Bonds, and if the capital gain is up to 50 lakhs rupees, it is exempt. Second, you can invest in buying a new house itself.

In the case of capital gains up to 2 crores rupees, you have the option to buy two houses. However, if the capital gain is more than 2 crores rupees, you can only buy one house.

The government has implemented this amendment to prevent misuse of the benefit by higher income individuals. The maximum capital gain exempt under the Income Tax Act is now limited to 10 crores rupees. If the capital gain exceeds 10 crores rupees, only the first 10 crores will be exempt, and the remaining amount will be taxable.

It should be noted that the house must be purchased in India to qualify for the exemption. If a person sells a house in another country and buys a house in India, the benefit will not be available. Similarly, if the property is sold under Section 54F of the income tax act, the maximum investment limit for exemption is restricted to 10 crores rupees.

Stay informed about the recent amendment to the taxability of long-term capital gain on the sale of house property by watching this informative video.

#gst, #income tax, #investment, #Financial literacy, #Benami, #Anti money laundering, #Share market

– [Income Tax Act 1961](source-link-for-income-tax-act)

2023 Amendment to taxability of L.T.Capital Gain on sale of house property 🏠

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