Exemption[ Section-54] For Capital Gains Arising On Transfer Of Residential House Property

1.	Basic conditions to be satisfied to claim the Benefit of Section-54
2.	Amount of exemption
3.	Consequences if the new house is transferred
4.	Capital Gain Deposit Account Scheme
5.	Non-utilisation of amount deposited in Capital Gain Deposit Account Scheme

Introduction

A person wanted to shift his residence due to certain reason, hence, he sold his old house and from the sale proceeds he purchased another house. In this case the objective of the seller was not to earn income by sale of old house but to acquire another suitable house. If in this case the seller was liable to pay income-tax on capital gains arising on sale of old house, then it would be a hardship on him. Section 54 gives relief from such a hardship. Section 54 gives relief to a taxpayer who sells his residential house and from the sale proceeds he acquires another residential house. The detailed provisions in this regard are discussed in this part.