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Capital gain exemption

prashanth c n (ACCOUNTANT) (46 Points)

21 December 2015

Mr.A purchased a residential house in April 2004 for Rs.259000/- and sold the same in mar 2015 for Rs.4200000/- and he purchased a residential site for Rs.2100000/- ( Dec 2015 ) can he claim the benefit of section 54

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Ankit Taprania (CA FINAL ) (542 Points)
Replied 21 December 2015

EXEMPTION U/S 54 is available onle when investment is made in RESIDENTIAL HOUSE .

Sorry, for site (residential or not ) exemption under section 54 can't be claimed.

Tony John (Chartered Accountant) (6085 Points)
Replied 22 December 2015

Section 54 can't be claimed unless investment is made in one residential house in India.

If you construct a residential house in the 'site', you can claim the benefit of Section 54 for such construction.

(Guest)

What do u mean by residential site? if its something related to a residential house, u can take exemption under section 54

SANTOSH AV (ARTICLE ASSISTANT) (36 Points)
Replied 22 December 2015

Construct a shed and make deeds for house and take exemption.

SANTOSH AV (ARTICLE ASSISTANT) (36 Points)
Replied 22 December 2015

Construct a shed and make deeds for house and take exemption.

1 Like

sunny (student) (21 Points)
Replied 22 December 2015

as per section 54 of the income tax act 1956 deduction allowed only when investment made in residential house by indv and huf..

Ashok J (CA Final) (880 Points)
Replied 22 December 2015

Slightly altering d query, if i purchase an independent house can i claim full purchase cost for exempn or only value of building.....coz i hv heard if u r purchasing a already constructed house in sale deed they give breakup as to what amt is towards land and building sepatately...