Exemption 54-f

This query is : Resolved

Rajendra Kumar Sankhla (Querist)
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15 April 2014 Assessee sold a land for Rs. 28 Lacs for cash. But for the purpose of stamp duty,value of property is taken at Rs. 38 Lacs.

Assessee want to claim exemption under section 54-F by purchasing the residential unit.

What amount (28 Lacs or 38 Lacs) should assessee invest to claim full exemption under section 54-F?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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15 April 2014 as per Gyan Chand Batra v. ITO, 133 TTJ (Jp) 482. you shall have to invest only the actual consideration received ie 28 lacs.

however, please note that there have been judgments like Mohd. Shoib v. Dy. CIT, 1 ITR (Trib.) 452 and Gouli Mahadevappa v. ITO, 135 TTJ (Bang.) 489 wherein it was held that valuation arrived under 50C need to be reinvested.

the logically sound judgment appears to be Gyand Chand Batra.