Good news for homebuyers! You can now invest in a house and claim tax exemption till September 30

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Revenue Tax exemption beneath Part 54 to Part 54GB: In view of the difficulties confronted by taxpayers because of the second wave of the Covid-19 pandemic throughout the nation, the Central Authorities has prolonged the timeline for claiming a tax deduction on the funding made in a residential home until September 30. The time to spend money on a residential home for tax deduction has been additional prolonged for greater than three months. The funding required to be made on or after April 1 can now be made until September 30.

“The compliances to be made by the taxpayers akin to funding, deposit, fee, acquisition, buy, building or such different motion, by no matter identify referred to as, for the aim of claiming any exemption beneath the provisions contained in Part 54 to 54GB of the Act, for which the final date of such compliance falls between 1st April, 2021 to twenty ninth September 2021 (each days inclusive), could also be accomplished on or earlier than thirtieth September 2021,” the Ministry of Finance mentioned in an official assertion on Friday (June 25, 2021).

Section 54 and section 54GB of the Income Tax Act 1962 provide for exemption from long term capital gains in case of a person or HUF accessible on reinvestment of capital beneficial properties and reinvestment of gross sales proceeds respectively.

As per Part 54 of the IncomeTax Act, you possibly can avail tax exemptions from Capital Features on promoting a residential property for those who re-invest it for buy or building of a residential property. Underneath part 54GB of the Revenue Tax Act, the exemption is offered from capital acquire arising out of the switch of a residential property for those who make investments the quantity for subscribing to the fairness shares of the eligible firm.

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The Union Finances 2019 had prolonged the applicability of capital acquire exemption beneath Part 54. It allowed the acquisition or building of two residential homes if the the acquire is lower than Rs 2 crore. A taxpayer can train this feature solely as soon as. Earlier, beforehand one buy or building was allowed.

The Central Authorities has additionally prolonged a number of different timelines, together with PAN-Aadhaar linking.