I have sold a house and want to invest the proceeds in equities for the next five years. Will it be exempt from LTCG by using Section 54GB?
You can invest the gains from the sale, before due date of filing the return for that assessment year
I have sold a house and want to invest the proceeds in equities for the next five years. Will it be exempt from LTCG by using Section 54GB?
Radhakrishnan Iyer, Bangalore
You can invest the gains from the sale, that is the difference between your purchase price and sale price in equity shares of an eligible company, before due date of filing the return for that assessment year, to qualify for deduction under Section 54GB. The definition of 'eligible company' is given in Section 54GB (6)(b). This company must also utilise the amount for purchase of new assets defined under Section 54GB(6)(d).