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Can assessee claim both 54 and 54EC against same asset?

Anirudh Hegde (CA >> Practice) (87 Points)

29 August 2015

Assessee sells flat for 1 crore. Assume that net capital gain as on 01-04-2015 is 80 lakhs, can he then use the amounts as follows?

Rs. 50 lakhs invested in new flat u/s 54

Rs. 30 lakhs invested in bonds u/s 54EC

Is this allowed? Can he claim the same asset under 2 different sections in the same year? Thereby claiming entire 80 lakhs as deduction?

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9 Replies

S. Shiroor (Others) (1207 Points)
Replied 29 August 2015

Yes, exemption under section 54EC along with any exemption u/s 54 or 54F, 54B can be claimed simultaneously.

Provided the new House acquired is not sold within three years of acquisition.

Taken from web site.

S. Shiroor (Others) (1207 Points)
Replied 29 August 2015

Only thing is 54EC - capital gain bonds of REC or NHAI cannot be combined with "Capital gain deposit account scheme" .

Anirudh Hegde (CA >> Practice) (87 Points)
Replied 03 September 2015

Any specific laws relating to that? Circular etc?

S. Shiroor (Others) (1207 Points)
Replied 03 September 2015

IN THE ITAT MUMBAI BENCH ‘D’ Assistant Commissioner of Income-tax, Cr-23(2) v. Deepak S. Bheda IT APPEAL NO. 5011 (MUM.) 2010 [ASSESSMENT YEAR 2007-08] JUNE 15, 2012

ORDER Vijay Pal Rao, Judicial Member

S. Shiroor (Others) (1207 Points)
Replied 03 September 2015

https://www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPublications/taxnewsflaash/Documents/india-aug27-2012no3.pdf

Ruling

Anirudh Hegde (CA >> Practice) (87 Points)
Replied 09 September 2015

Thank You Sir

CA R.K. JHA (CA Practice ) (25 Points)
Replied 09 September 2015

yes, provided the investment in bond is done on or before 30/09/2015 .

Taarakesh (Practice) (85 Points)
Replied 21 June 2018

Did the department further appeal before HC in Deepak S. Bheda case? Is there any other case that has gone in favour of the assessee?

Satish (Work) (111 Points)
Replied 22 June 2018

Originally posted by : S. Shiroor
	Only thing is 54EC - capital gain bonds of REC or NHAI cannot be combined with "Capital gain deposit account scheme" .