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Samkit

Samkit Maniar  |174 Answers  |Ask -

Tax Expert - Answered on Jul 05, 2024

CA Samkit Maniar has eight years of experience in income tax, mergers and acquisitions and estate planning.
He has graduated from Mumbai’s N M College of Commerce and Economics and has completed his CA from The Institute of Chartered Accountants of India."... more
Atul Question by Atul on Jul 04, 2024Hindi
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Dear Samkit, Thanks for the reply. Could you please confirm if Section 54F is available under new regime also or only under old regime?

Ans: It is available under both the tax regimes.

Please take your CAs advice before moving ahead.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

Ramalingam Kalirajan  |7122 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 09, 2024

Asked by Anonymous - Jun 08, 2024Hindi
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I have purchased a under construction property in Aug2021 and possession is in 2024 dec. I have sold my existing house in jan'24 and investing the full amount in the new flat can i get benifits under section 54f
Ans: Understanding Section 54F of the Income Tax Act
Thank you for sharing your query. Section 54F of the Income Tax Act, 1961, provides tax relief on long-term capital gains arising from the sale of any capital asset other than a residential house, provided the net sale consideration is reinvested in purchasing or constructing a residential house. This section aims to encourage investment in residential properties by providing tax exemptions on capital gains.

Eligibility Criteria for Section 54F
To avail the benefits under Section 54F, certain conditions must be met:

Long-Term Capital Gain: The asset sold should be a long-term capital asset.
Investment in Residential Property: The net consideration from the sale should be invested in purchasing or constructing a residential property within the specified period.
Single Residential Property: The taxpayer should not own more than one residential house property, other than the new house, on the date of transfer.
Time Frame for Investment:
Purchase: Within one year before or two years after the date of transfer.
Construction: Within three years from the date of transfer.
Your Scenario: Selling and Reinvesting in a New Property
You sold your existing house in January 2024 and plan to invest the entire amount in an under-construction property, with possession due in December 2024. Let’s evaluate how you can benefit under Section 54F.

Timeline of Events
Purchase of Under-Construction Property: August 2021
Sale of Existing House: January 2024
Possession of New Property: December 2024
Meeting the Conditions for Section 54F
Long-Term Capital Gain
Assuming the property sold in January 2024 was held for more than 24 months, the gain qualifies as a long-term capital gain, making you eligible for Section 54F benefits.

Investment in Residential Property
You plan to invest the entire sale proceeds in a new property purchased in August 2021. This new property is under construction, with possession due in December 2024. Here, the critical aspect is the timing of your investment and possession.

Assessing the Time Frame for Investment
According to Section 54F, the construction of the new property should be completed within three years from the date of sale of the original property. Since you sold your house in January 2024, the construction of your new house should be completed by January 2027. Since possession of your new house is expected in December 2024, it falls well within the stipulated three-year period, making you eligible for the exemption under Section 54F.

Calculation of Exemption
The amount of exemption under Section 54F is proportional to the investment made. If the entire sale consideration is invested, the entire capital gain is exempt. If only a part of the consideration is invested, the exemption is calculated proportionately.

Example Calculation
Let’s assume the following figures for clarity:

Sale Consideration of Existing House: Rs 50 lakhs
Cost of Under-Construction Property: Rs 60 lakhs
Capital Gain from Sale: Rs 20 lakhs
Since you are investing the full sale consideration of Rs 50 lakhs in the new property, the entire capital gain of Rs 20 lakhs is exempt under Section 54F.

Documentation and Compliance
To ensure smooth claiming of the exemption under Section 54F, maintain proper documentation, including:

Sale Deed of the Existing Property: Documenting the sale transaction.
Agreement to Sell and Purchase of New Property: Showing the reinvestment of the sale proceeds.
Proof of Construction/Completion: Possession certificate or completion certificate from the builder, indicating the date of possession.
Additional Points to Consider
Holding Period
To retain the benefits of Section 54F, the new property must be held for at least three years from the date of its acquisition or construction. If sold within this period, the capital gains exempted earlier will become taxable in the year of sale.

Multiple Properties
Ensure you do not own more than one residential property, other than the new house, on the date of transfer of the original asset. Owning multiple residential properties can disqualify you from availing the exemption under Section 54F.

Importance of Certified Financial Planner (CFP) Guidance
Navigating tax laws can be complex, and professional guidance ensures compliance and optimal tax savings. A Certified Financial Planner (CFP) can help you strategically plan your investments, ensuring maximum benefits under applicable tax laws while aligning with your long-term financial goals.

Strategic Investment Planning
While real estate investment offers tax benefits, diversifying your portfolio is crucial for balanced growth. Alongside property investments, consider the following:

Equity and Mutual Funds
Equity and mutual funds offer high growth potential, beating inflation over the long term. Actively managed funds, guided by a CFP, can provide superior returns compared to index funds due to strategic stock selection and management.

Public Provident Fund (PPF)
PPF is a risk-free investment with tax benefits under Section 80C. Regular contributions to PPF provide a stable corpus for long-term goals.

Systematic Investment Plan (SIP)
Investing in mutual funds through SIP ensures disciplined investing and benefits from rupee cost averaging, mitigating market volatility.

Evaluating Direct vs. Regular Funds
While direct funds have lower expense ratios, the expertise of a CFP in regular funds can enhance overall returns through strategic asset allocation and periodic rebalancing. This professional guidance often outweighs the cost advantage of direct funds.

Ensuring Adequate Insurance
Adequate health and life insurance coverage is crucial. It protects your family and investments from unforeseen events, ensuring financial stability.

Emergency Fund
Maintain an emergency fund covering 6-12 months of living expenses. This ensures liquidity and financial security in case of unexpected expenses or income disruptions.

Tax Planning and Compliance
Efficient tax planning enhances net returns. Utilize available tax-saving instruments and ensure compliance with tax laws to avoid penalties and maximize savings.

Final Insights
Your strategic approach to reinvesting the sale proceeds from your existing property into a new under-construction property aligns well with the provisions of Section 54F. This allows you to benefit from significant tax exemptions on long-term capital gains, ensuring compliance with the stipulated conditions.

Maintaining proper documentation, adhering to holding periods, and leveraging professional guidance from a Certified Financial Planner ensures optimal financial planning and tax efficiency. Diversifying your investments, maintaining adequate insurance, and having an emergency fund further strengthen your financial foundation.

Your commitment to informed financial decisions sets a strong foundation for achieving your long-term financial goals, ensuring a secure and prosperous future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Gynaecologist, IVF expert - Answered on Nov 26, 2024

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Dr Nandita Palshetkar  |10 Answers  |Ask -

Gynaecologist, IVF expert - Answered on Nov 26, 2024

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Hello mam, I am a girl 18years old I had pcod since my period started I got my period when I was 13years that time everything was ok but after few months I was bleeding heavy getting menses 2-3in a month so my mom got very worried and she takes me to a gynaecologist and she prescription and tablets like "novelon"and then I am ok but after that I didn't get my periods for few months and also that time lockdown happened so we can't go to a gynaecologist and then after everything got normal and hospitals we go to the doctor and she asked from how many time you don't get your menses and then I replied from past 6months and she shouted on me and immediately told me to have ultrasound and after seeing the reports she said you have pcod then the rest of the story you know I am still suffering from this disease I don't get my periods if I don't take the tablets now I can't understand what to do even I changed a lot of gynaecologists but nothing happened and they this is a incurable disease you have to take tablets for lifetime and also I am not even financially strong
Ans: Polycystic ovary syndrome (PCOS) is a hormonal condition that can cause irregular or absent menstrual periods.
Higher amounts of androgens in PCOS can interfere with egg development and ovulation, leading to skipped or absent periods.
One of the best ways to cope with PCOS is to maintain a healthy bodyweight, eat nutritious foods and exercise regularly.
LIFESTYLE CHANGES:
Eating healthy foods, exercising regularly, and maintaining a healthy weight can help regulate your menstrual cycle
BIRTH CONTROL PILLS:
Combination oral contraceptives (COCs) can help regulate menstrual periods and treat acne and hirsutism. It can take up to six months to see if birth control is effective.
ANTIESTROGENS:
These medicines can help with skin and hair growth problems
METFORMIN
This diabetes medicine can help control ovulation and androgen levels, which can make menstrual cycles more regular
Supplements containing
Myo ionositol, chirositol, vitamin D, chromium also helps in maintaining pco

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Nayagam P

Nayagam P P  |3921 Answers  |Ask -

Career Counsellor - Answered on Nov 25, 2024

Asked by Anonymous - Nov 25, 2024Hindi
Career
My daughter is in 10 th class Maharashtra board She wants to do carrier in mathematics or economics what are the ways for further education
Ans: Your daughter is interested in pursuing a career in Mathematics or Economics, which offer exciting opportunities and a variety of educational pathways. She can choose from the Science Stream (Mathematics Focus) or the Commerce Stream (Economics Focus), depending on her interests and aptitude.

An option for her is to choose Science with Mathematics in 11th and 12th grade, which will provide a strong foundation in math. After completing 12th Science with Mathematics, she can pursue a Bachelor's Degree in Mathematics, such as B.Sc. in Mathematics, B.Tech or B.E. (Engineering), or a B.Tech in Computer Science, Information Technology, or Electronics.

Postgraduate courses in Mathematics can lead to M.Sc. in Mathematics or Applied Mathematics, or M.Tech in Data Science or Computer Science. Other career paths in Mathematics include Actuarial Science, Data Science/Analytics, and pure mathematics/research.

In Economics, she can pursue Commerce with Economics in 11th and 12th grade, followed by a Bachelor's Degree in Economics, a Master of Arts in Economics, or a Master of Science in Economics. Specialized courses in Economics include Econometrics, Public Policy, Finance, and International Organizations/NGOs.

Joint careers in Mathematics and Economics can be pursued through integrated programs like B.A./B.Sc. in Mathematics and Economics, or Actuarial Science/Financial Mathematics. Entrance exams and competitive exams may be required for each path.

Pursuing Mathematics through the Science stream is an excellent path for your daughter, while Economics through the Commerce stream is ideal for those interested in understanding economies and global trends. All the BEST for Your Daughter's Prosperous Future.

To know more on ‘ Careers | Education | Jobs’, ask / follow Us here in RediffGURUS.

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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