INCOME TAX4 Sept 2026
Buying a house to save capital gains tax on shares, MFs? Renovation costs may qualify too | Mint
The Mumbai ITAT allowed ₹1.52 crore spent on renovating a house to qualify for capital gains tax exemption when reinvesting share-sale proceeds. This widens the costs you can include. The tax department had rejected the renovation claim, but the tribunal ruled in favour. If you sell shares or mutual funds and buy a home, renovation expenses within time may also be covered. Keep all supporting documents.
Key Statutory Highlights
- Mumbai ITAT allowed ₹1.52 crore spent on house renovation to qualify for capital gains tax exemption.
- Rajesh Saluja sold shares worth about ₹15.40 crore and bought a ₹13.90 crore house, depositing the rest in the Capital Gains Account Scheme.
- The tribunal said Section 86 does not prohibit using sale proceeds for renovation after purchase, as long as it is within the time limit.
Actionable Advice for Taxpayers / Founders:If you plan to claim this exemption, keep all renovation bills and bank records showing the spending happened within the time limit, and ask a tax advisor to check your eligibility.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
Share: