A residential house is sold for ₹90 lakh and the long-term capital gains computed are ₹50 lakh. The assessee bought two residential houses for ₹30 lakh and ₹20 lakh respectively. The amount eligible for exemption under s

CS Executive · Tax Laws and Practice · PYQS · December 2015
A residential house is sold for ₹90 lakh and the long-term capital gains computed are ₹50 lakh. The assessee bought two residential houses for ₹30 lakh and ₹20 lakh respectively. The amount eligible for exemption under section 54 would be
(A) ₹50 lakh
(B) ₹20 lakh
(C) ₹30 lakh
(D) Nil.

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C). Official source note: A residential house is sold for ₹ 90 lakh and the long-term capital gains computed are ₹ 50 lakh. The assessee bought two residential houses for ₹ 30 lakh and ₹ 20 lakh respectively. The amount eligible for exemption under section 54 would be — (A) ₹ 50 lakh (B) ₹ 20 lakh (C) ₹ 30 lakh (D) Nil.

Topics: Income Tax Act, 1961

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