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Form 39 See Rule 54 of Income Tax

Form 39 See Rule 54 of Income Tax

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Video instructions and help with filling out and completing Form 39 See Rule 54 Of Income Tax

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Instructions and help about form 39 a

the profit earned from the sale of a house is taxed as a capital gain depending on the holding period the house may be classified as either a short-term or a long-term capital asset a tax rate of 20 is levied along with the surcharge and says as applicable if the property is held for 24 months or more known as long term while the gains are taxed at slab rates if held for a short term that is for less than 24 months let us say a person wanted to shift his residence due to certain reasons and hence he sold his old house from the sale proceeds he decides to purchase another house in this case the objective of the seller was not to earn income by the sale of the old house but to acquire another suitable house if in this case the seller was liable to pay income tax on capital gains arising from the sale of the old house then it would impose a hardship on him under section 54 of the income tax act a seller can avail of tax exemption on the capital gain arising from the transfer of a resident

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