04 May 2015
My client having 3 ownership flat purchase before 3 years i.e. all are qualified for long term capital gain(considering holding period start from date of agreement and not from the date when housing loan from bank is over) he wants to sales all 3 and wants to purchase 1 single new one,
My question is 1) Whether my client is eligible to get deduction under section 54 assuming other conditions are fulfilled?? 2) Any precaution o keep??
04 May 2015
Thanks for prompt reply is there any case law on your saying?? if yes then pl. share it.
Just for further clarification reverse is not eligible i.r. by selling one one flat where LTCG is done and investing in three different units, correct??
05 May 2015
Again Thanks, my first part of question is unanswered i.e. any case law??
Further possibilities may be 1) out of 3 homes one is sold, say in May15 and client give advance for purchase of new home, that time client have another two residential home and second is sold in Apl2016 and client has given balance amt. of new home and make agreement and third is sold in Jun2016.
05 May 2015
There is no restriction placed in section 54 which restricts exemption only in respect of purchase of one residential house. Even if assessee sells more than one house in the same year and the capital gains is invested in a new residential house, the claim of exemption cannot be denied if other conditions are fulfilled. [DCIT v. Ranjit Vithaldas [2012] 23 taxmann. com 226 (ITAT-Mum)].
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