Exemption u/s 54

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kunal (Querist)
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19 April 2013 if assessee owns 2 residential house and sold 1 out of his 2 houses then can he claim exemption u/s 54/54f for purchase of another residential house????

please reply

thanks in advance

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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19 April 2013 Yes, he can claim exemption under Section 54.
.

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CA Vikas Acharya

CA Vikas Acharya (Expert)
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19 April 2013 54 allowed
54f not allowed. (as 54f allowed only when sale of an asset other than residential house)

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kunal

kunal (Querist)
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19 April 2013 @ CA VIKAS ACHARYA

SIR QUESTION IS IF ASSESSE ALREDY OWN 1 HOUSE
NOW HE SOLD HIS PLOT OF LAND AND INVEST THE SAME IN PURCHASE OF A NEW HOSUE..
NOW CAN HE CLAIM EXEMPTION U/S 54F??

CA Vikas Acharya

CA Vikas Acharya (Expert)
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19 April 2013 yes he can, he must not have other than one house at the time of transfer or later on upto 3 years except this new house.
means 1 old house and 1 new house allowed.

kunal

kunal (Querist)
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19 April 2013 sir please provide me text of section or any case law

CA Vikas Acharya

CA Vikas Acharya (Expert)
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19 April 2013 https://law.incometaxindia.gov.in/DIT/
type 54 in the section coloum
check 54F.
AND READ THE PROVISO

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kunal

kunal (Querist)
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19 April 2013 sir is this also apply to section 54?

CA Vikas Acharya

CA Vikas Acharya (Expert)
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19 April 2013 no, though before asking this you could also check section 54 text on the same link, where no such condition is written.
but condition there is that the sold an purchased, both assets must be residential houses.

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kunal

kunal (Querist)
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19 April 2013 ok
thank you sir

kunal

kunal (Querist)
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19 April 2013 sir that means even if assessee owns more than 10 residential house. And sold 1 residential house and invest the sale proceeds in another residential house.
He’s still eligible for claiming exemption u/s 54.

m i right?

CA Vikas Acharya

CA Vikas Acharya (Expert)
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19 April 2013 yes Mr kunal, you are right.
but he must follow the time limit of invest or construction given in section 54

kunal

kunal (Querist)
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19 April 2013 thank you sir

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