How 54 cash can Save You Time, Stress, and Money.

the vendor must construct the residential property inside of 3 yrs from your date of sale/transfer. In case of compulsory acquisition, the period of acquisition or construction will be decided from the date of receipt of payment (no matter if first or additional compensation)

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In straightforward words and phrases, it is just the profit gained by the individual on sale of your assets that is certainly taxable. Profit is definitely the distinction between the sale cost and the price of the asset. 

Even further, if they would like to promote the new property owned by them, the individual will have to maintain the assets for at least 3 many years as per segment 54.

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The above circumstances are cumulative. Consequently, whether or not just one affliction is not really fulfilled, then the vendor are unable to avail the benefit of the exemption below Segment 54.