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Mr Patel, who hails from Khatodara in Surat, Gujarat, is a co-owner of his late mother’s land in Althan. This plot, spanning 9,510 sq. meter was originally bought for Rs 21.17 lakh by his mother on March 31, 2008.
When Seema S. sold her property in Patna, Bihar for Rs 4.5 crore back in 2016, she didn’t have to pay any long term capital gains (LTCG) tax. The reason for this is she claimed LTCG tax exemption under Section 54.
Is owning multiple floors in the same residential building equivalent to owning more than one residential property? And if that is the case, will the concerned individual not be eligible to claim a long-term capital gains (LTCG) exemption from the sale of his/her capital assets under Section 54 of the Income Tax Act?
The Delhi High Court recently denied a widow’s claim for capital gains tax exemption under Section 54F of the Income Tax Act because she had purchased two non-adjacent flats in Noida using the proceeds from the sale of a plot she had inherited from her husband.