Answer to Question #306218 in Law for Dhruv

Question

Mr. Damman on his birthday purchased a residential property on 25th July 2018 for Rs 50 Lakhs and made some addition to the property in the month of September 2018 for Rs 3 lakhs.

He sold the house property in May 2020 to his brother-in-Law for 70 Lakhs. Out of the sale proceeds he spends 10 lakhs to purchase another house property in his home town Jhabua, in the month of October, 2020.

Discuss Section 54, also whether the benefit of indexation will be available or not as per Section 54.

Further, calculate the amount of capital gains taxable (long term / short term) in the hands of Mr. Damman for the assessment year 2021-22