Section 54 exemption is for:
ASTCG on shares
BAll capital gains (per relevant Section) (per relevant Section)
CLTCG on residential house reinvested in another house
DLTCG on bonds
Answer & Solution
Correct answer: C. LTCG on residential house reinvested in another house
1. Section 54 exempts LTCG on transfer of long-term residential house, if reinvested in another residential house in India.
2. New house within 1 year before or 2 years after, or constructed within 3 years.
3. From AY 2024-25: exemption capped at Rs. 10 crore. Two-house option once if LTCG ≤ Rs. 2 crore.
_Source: ICAI BoS CA Final Paper 7, Ch 4 "Capital Gains"_
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