Tax exemption until September 30 New homebuyers are in luck!

income tax

Tax exemption until September 30 New homebuyers are in luck!

income tax
Income Tax exemption under Section 54 to Section 54GB

Due to the difficulties faced by taxpayers as a result of the second wave of the Covid-19 pandemic across the country the Central Government has extended the deadline for claiming a tax deduction on a residential house investment until September 30. The period for investing in a residential house for tax purposes has increased by more than three months. The investment that originated on or after April 1 can now take place until September 30.

“The compliances to be made by the taxpayers such as investment, deposit, payment, acquisition, purchase, construction or such other action, by whatever name called, for the purpose of claiming any exemption under the provisions contained in Section 54 to 54GB of the Act, for which the last date of such compliance falls between 1st April, 2021 to 29th September 2021 (both days inclusive), may be completed on or before 30th September 2021,” the Ministry of Finance said in an official statement on Friday (June 25, 2021).

A long-term capital gain or sale proceeds reinvested by an individual or HUF are exempt from long-term capital gains tax.

It may be possible to avoid capital gains taxes on a new home purchased with the proceeds from the sale of a home. Capital gains on investments in eligible companies are exempt under section 54GB of the Income Tax Act.

The capital gain exemption under Section 54 continues in the Union Budget 2019. It is permissible to build two residential houses provided they are not more than Rs 2 crore in value. A taxpayer may only use this option once. Previously, only one purchase or construction allowed. The Central Government has also extended several other timelines, including the linking of PAN and Aadhaar.

ALSO READ: TDS On Purchase Of Property @ 1% Under Section 194IA

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