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Query asked by Vikas Goyal on November 2, 2020

Re: Regarding Income Tax Matter

Marriage took place in 2015. Thereafter, due to disputes, divorce of the couple was finalized by the court in September 2019. The court gave jewellary to the girl as per the list finalized by the court. The list of jewellary contains some jewellary given by the relatives of the girl at the time of marriage and some jewellary was given by the bridegroom parents, etc. Now, the girl wants to sell this jewellary and from the amount received from the sale of jewellary wants to purchase the house in a foreign country.

1. I want to know whether the sale of jewellary is liable to long term capital gain keeping in view the base year 2015 by applying indexation.
2. Whether the funds can be utilized for purchase of property outside India and can take benefit u/s 54.
Please guide me.

The same will be subject to long term capital gain with the benefit of indexation. Benefit of section 54F  will be available if the assessee satisfies the conditions therein. The seller cannot get the benefit of section 54F or section 54   in respect of  investment made for buying a residential  house  at   abroad . Law is amended   by the Finance  ( No .2 ) Act , 2014  w.e.f 1-4 -2015   as per the amended law  investment made in residential house in India is only eligible for exemption . After paying the  capital gains tax the surplus can be utilised for purchasing the  house abroad subject to RBI guidelines and law of respective country .


 

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