Mr. A sold is having two residential house properties. One House he sold on 30.04.2008 with a capital gain of Rs. 32.50 Lakhs and the same was deposited in Capital Gains Deposit Scheme and got exemption.
By withdrawing the Deposit amount of Rs. 32.50 Lakhs, he purchased another House property on 25.03.2010 with a cost of Rs. 57 Lakhs.
Again, he sold out his vacant lands on 08.11.2010 with a LTCG of Rs. 14 Lakhs. Can he claim exemption u/s.54 as he purchased a House on 25.03.2010 which is woth Rs. 57 Lakhs against the CGDeposit withdrawl of Rs. 32.50 Lakhs or NOT!
If not, can he buy another House property worth Rs. 14 Lakhs or above to claim exemption u/s.54
22 July 2011
You see that the provision of various sections restrict exemption to only one houe. Since your client is having 2 houses he cannot claim any deduction u/s 54F.
CAclubindia
